August 31, 2026
SentinelOne and CrowdStrike fell sharply as a trimmed profit forecast outweighed revenue beats, while Nvidia, Apple, and others posted stronger results.
What happened
SentinelOne slid 8 percent after cutting its profit outlook despite beating revenue estimates. CrowdStrike dropped 7 percent in sympathy. Meanwhile, Nvidia reported a Q2 beat, Apple moved down 0.9 percent on the day, and Chinese chipmaker CXMT posted an 874 percent revenue surge.
Why it matters
The selloff in SentinelOne and CrowdStrike shows the market punishing cybersecurity names where growth is overshadowed by shrinking profitability. This comes even as the broader AI and chip story stays strong, with Nvidia beating expectations and hyperscalers pouring money into AI infrastructure. The split performance means investors are differentiating sharply between pure AI compute demand and software security spending.
The case against
SentinelOne's revenue still beat estimates. The profit cut could be a short-term investment in growth that pays off later. CrowdStrike's move may simply be guilt by association, not a reflection of its own fundamentals.
What settles it
Whether Palo Alto Networks clears the high bar set by its own Q3 beat when it reports on September 1.