Jim Cramer Defends Intuit (INTU) Against AI Skeptics Ahead of Investor Day

Intuit (INTU) reported $4.35B revenue (up 13.7% YoY), beating expectations, but lowered full-year guidance, causing its stock to fall 10.1%. BILL (BILL) reported $436.2M revenue (up 13.8% YoY), beating expectations, but missed full-year revenue guidance. Paychex (PAYX) reported $1.61B revenue (up 12.5% YoY), meeting expectations, and its stock rose 18.2%.

AI stocks fell Monday after industry leaders called for a slowdown in development due to safety concerns. Nvidia dropped 3.5%, and Softbank lost 10.7% in Tokyo. The Nasdaq fell 0.9%, while the S&P 500 and Dow Jones also declined. Oil prices rose, pushing the 10-year Treasury yield to 5%.

AI stocks fell globally after industry leaders called for a slowdown due to safety concerns. Nvidia dropped 3.5%, while SpaceX and Softbank also declined. Oil prices rose, pushing the 10-year Treasury yield to 5%. The S&P 500 and Nasdaq fell 0.6% and 0.9%, respectively. Some software and oil stocks gained.

Intuit stock rose 2.0% to $327.80 in pre-market trading, supported by a 15% dividend increase, a Q4 earnings beat with adjusted EPS of $4.03, and full-year revenue of $21.45 billion. Analysts maintain a 'Buy' rating with a $405 average price target, despite a broader market selloff.

Enterprise software stocks are rising while semiconductor stocks fall due to concerns about AI development pace. CrowdStrike, ServiceNow, and others gain, while Marvell, Intel, and chipmakers decline. Investors are rotating into SaaS stocks, seen as less tied to hardware cycles, amid signs of plateauing AI infrastructure spending.

Intuit reported Q2 revenue of $4.35b, beating expectations but missing EPS forecasts. The company issued softer full-year guidance, pressuring its outlook despite AI and platform investments. Intuit projects $29.1b revenue and $6.8b earnings by 2029, with 11.6% yearly revenue growth. Analysts' views vary on AI execution and its impact on margins.