The word: الْحِكْمَةَ (al-hikmah) appearing in verse 38:20: وَآتَيْنَاهُ الْحِكْمَةَ وَفَصْلَ الْخِطَابِ (and gave him wisdom, and a decisive speech), as obvious, means wisdom, that is, 'We had blessed him with the precious assets of reason, insight and vision.' Some elders have suggested that it means 'nubuwwah', the station and mission of a prophet. As for the second gift: فَصْلَ الْخِطَابِ (fasl al-khitab: translated here as: a decisive speech), it has been explained in different ways by commentators. Some have said that it means power of oration - and the fact is that Sayyidna Dawud (علیہ السلام) was a great orator. He was the first one who started saying اَمَّا بَعد (amma bad: after that) following hamd and Salah in his religious sermons. Some others have said that it means the ability to make a decision at its best, 'that is, Allah Ta’ ala had given him the ability and power to resolve disputes and decide matters comprehensively. The truth of the matter is that the words used in the Qur'an seem to have ample room for both meanings, and both are meant. Incidentally, the translation done by Mau1ana Ashraf ` Ali Thanavi (رح) - 'Faisla kar denay wali taqrir' - helps accommodate both meanings. (And so does the English translation given above.)