Nvidia's earnings report might be messy, but that's not a reason to sell, Wall Street analysts say
Nvidia 's first-quarter earnings report on Wednesday afternoon could set the tone for Wall Street heading into June, but only if investors can agree on what the results truly mean about the artificial intelligence boom. The chip juggernaut has jumped 22% over the past month, even as Wall Street analysts are cautioning clients that the quarterly report likely won't be clean and could include misses on key metrics. NVDA 1M mountain Shares of Nvidia have gained more than 20% over the past month. Part of that murky outlook is due to the ways in which Nvidia is caught up in the geopolitical tensions around trade and national security. The chipmaker has already announced that it would take a $5.5 billion charge in the quarter related to U.S. government export restrictions on so-called H20 integrated circuits, but the full impact of that is still not known, which could lead to a miss on revenue guidance. Morgan Stanley analyst Joseph Moore said in a note to clients that the impact of the those restrictions is "messy" but probably not enough to hurt the long-term positive story for the stock. "Sell side does not appear to have universally modeled the impact of H20 ban, so there is some downside potential vs. stale consensus. But if [management] is convincing that supply of racks and non rack Blackwell is improving, and that there is 2h acceleration, it should not matter," Moore said. The quarterly report, which shows results through April 27 , will also not reflect the latest excitement around artificial intelligence. This month, Alphabet rolled out a slew of new AI initiatives and product ideas at its I/O developer conference , and Microsoft debuted its Claude 4 AI model . "The quarter doesn't matter; the qualitative commentary does + so does the building demand for 'more AI.' The previews and buyside conversations have been pretty consistent this quarter …. .slight beat and a guide that will be likely BELOW consensus," said a Bank of America sales desk note. "Saying the 'quarter' and guide don't matter is obviously a little extreme — but if one can't see that the usage/adoption of AI has hit an explosive inflection in the past 2 months … I don't know what to tell you," the note continued. Nvidia is still solidly below its record high from late last year, but that doesn't mean the bar isn't high. The stock still has buy or strong buy ratings from 56 of 64 major analysts, according to LSEG. "We advise investors to weather the uncertainty and stay long the stock as this is likely largely the last wave of negative news for NVDA this year," Piper Sandler analyst Harsh Kumar said in a note to clients. — CNBC's Michael Bloom contributed reporting.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Forbes
28 minutes ago
- Forbes
Forbes Daily: Supreme Court Gives A Boost To Oil And Gas Billionaires
J.K. Rowling brought magic to multiple generations with her wizarding world—and it's made her a billionaire, again, despite plenty of recent controversy. The Harry Potter author is now worth $1.2 billion, according to Forbes estimates, after previously falling off the Billionaires List in 2012 as a result of charitable giving. That's in spite of the fact that Rowling has placed herself at the center of a culture war, frequently posting anti-transgender rhetoric on social media. Since 2020, she has earned more than $80 million per year from the sales of her books and the vast litany of Potterverse brand extensions. The staying power of the franchise is only set to continue, with a new HBO Max series adaptation of the books going into production this summer. President Donald Trump's 'Liberation Day' tariffs will stay in effect for now, a federal appeals court ruled, despite a Wednesday ruling from the Court of International Trade that they were unlawful, plus a second, similar ruling from a federal court Thursday. But if an appeals court or the Supreme Court, where the case is likely to end up, ultimately sides with the international court and says they're unlawful, the Trump Administration will have to refund any tariffs collected. MORE: Nvidia briefly became the world's most valuable company again Thursday after its latest earnings report, surpassing Microsoft, before falling back into No. 2. The AI chip giant's stock surged post-earnings and after the international trade court's tariff ruling, helping lift the broader market, before indexes ended the day at more modest gains. Meanwhile, Treasury Secretary Scott Bessent said trade talks between China and the U.S. have stalled and a direct call between the two countries' presidents may be needed to close a deal, leading U.S. stock futures to drop slightly in early trading on Friday. After their meeting in Geneva earlier this month, U.S. and Chinese officials announced they would significantly cut back tariffs placed on each other's goods for at least 90 days, while both sides work on a trade agreement. Despite President Trump repeatedly attacking Federal Reserve Chairman Jerome Powell, the pair met Thursday at Trump's request—Powell's first meeting with a sitting president since May 2022. Trump has expressed frustration with the Fed's hesitation to lower interest rates, but Powell was insistent that the Fed would determine monetary policy based on economic data, according to a statement from the central bank. The SEC dropped a lawsuit against Binance on Thursday, days after the crypto exchange began listing a stablecoin created by World Liberty Financial, one of President Donald Trump's blockchain ventures. Binance admitted in a November 2023 plea deal to anti-money laundering and sanctions violations, agreeing to pay $4 billion, and it's not the only Trump crypto partner to have benefited personally from his administration. The Supreme Court gave a boost to oil and gas companies as it sided Thursday with a railway company that argued an environmental review of a planned construction project in Utah was too broad. Dozens of energy billionaires stand to benefit, like Anschutz Exploration Corporation leader Philip Anschutz and Energy Transfer LP founders Kelcy Warren and Ray Davis, who are worth $16.9 billion, $7.2 billion and $3.7 billion, respectively. As AI chatbots become more trusted with high-stakes jobs like helping to diagnose medical patients or screening loan applications, they're also making more mistakes,—which means assessing a model's performance is more crucial than ever. The once-buzzy data-labeling startup Snorkel AI is shifting gears to help enterprises create evaluation systems and datasets to test their AI models, raising $100 million at a $1.3 billion valuation. Despite repeated promises of an imminent launch, President Donald Trump's Gold Card visa—which would give wealthy investors U.S. residency and an expedited path to citizenship—would require Congress to change immigration laws, a process that could take months or years. And furthermore, while Trump has suggested the administration could raise trillions selling the cards, the math just doesn't add up, according to one expert: To afford the visa, someone would have to be worth over $100 million, and there are fewer than 30,000 centimillionaires in the entire world, more than a third of whom are American. A federal judge will indefinitely block the Trump Administration's ban on Harvard University's enrollment of foreign students, amid the ongoing feud between the university and federal government. In a shift from the Department of Homeland Security's initial announcement, which stated the ban would take effect immediately, the administration told Harvard ahead of the court hearing that it had 30 days to show why the school should not be barred from enrolling international students. Real Madrid forward Vinícius Forbes' latest ranking of the World's Most Valuable Soccer Teams, Spain's Real Madrid once again takes the crown, worth an estimated $6.75 billion after becoming the first soccer team to cross $1 billion in annual revenue during the 2023-24 season. Together, the 30 most valuable soccer teams are worth more than $72 billion, or an average of $2.4 billion, up 5% from last year. Michigan Potash & Salt founder Ted Pagano jamel toppin for forbes Michigan is sitting on a motherlode of potash, a mineral which is the main ingredient in agricultural fertilizer. The U.S. uses 5.3 million tons annually and imports 95% of it, mostly from Canada. Ted Pagano's Michigan Potash & Salt Company is on the cusp of closing on $1.8 billion of financing for a new mine, including a $1.3 billion loan from the Department of Energy and $500 million in equity being arranged by JPMorgan and Goldman Sachs. If all goes well, the mine will be churning out 1 million tons per year of potash (worth $350 million) and 1.3 million tons of salt (worth $80 million) by the end of the decade. With a resource base proven to be 130 million tons, the company could keep that up for a century or more—and make Pagano, who owns 65%, very rich. Even now his stake is worth at least $300 million. To extract the potash, Pagano will use a form of 'in-situ,' or solution mining. He'll drill 8,000-foot-deep wells in pairs. One is the injection well, down which Michigan Potash will send hot water to dissolve potash and salt in place. The second is the production well; the solution travels up that well to the processing plant for separation and drying. The water is reclaimed, heated and sent back down the hole. From the surface the mine will hardly be noticeable and should be eligible for green tax credits. 'There's no hair on this project that we're ashamed of,' says chief operating officer Aric Glasser. In all, Forbes estimates that costs should come to about $140 per ton; potash sells for about $350 a ton today. And agricultural giant ADM has already agreed to buy nearly all of Pagano's yearly potash production. WHY IT MATTERS 'This story shows how even in a giant, oligopoly-controlled industry like fertilizer, an individual entrepreneur like Ted Pagano—in the right place at the right time—can generate huge value for himself and for the country,' says Forbes senior editor Christopher Helman. 'This matters now because there are many other critical minerals of which the U.S. needs to develop secure domestic supplies. Hopefully Pagano's story can inspire more entrepreneurs to take on the challenge.' MORE The $800 Million Rare Earths Portfolio Of Australia's Richest Woman References to DEI in the corporate reports of top companies took a sharp dive this year, according to analysis by Gravity Research. As President Donald Trump has waged a war on DEI, many companies have dropped or reframed their diversity initiatives: 72%: The drop in references to diversity, including 'DEI' and 'racial diversity,' in the reports of major corporations between 2024 and 2025, per the study 87%: The increase in usage of the word 'belonging' between 2023 and 2024 as a 'safer' alternative to DEI, though mentions of the word then declined 47% between 2024 and 2025 'Speaks volumes to the current political environment': said Joanna Piacenza, vice president of thought leadership at Gravity Research No matter the reason, if you were seeking a promotion that didn't pan out, you can still create your own opportunities for leadership development in your current role. Look at previous performance reviews to figure out what skills you need to work on, and collaborate with your manager to restructure your role for stretch assignments. And if you're looking for an opportunity to manage people, start by managing a project or asking your boss if you can take something off their plate. Scientists have created a 'smart' dental floss that doesn't just clean your teeth, but also gauges what about your health? A. Blood pressure B. Presence of cavities C. Stress levels D. Recent drug use Check your answer. Thanks for reading! This edition of Forbes Daily was edited by Sarah Whitmire and Chris Dobstaff.
Yahoo
34 minutes ago
- Yahoo
Government 'megafund' pension plans could give £6k boost to savers
Plans to double the number of UK pension "megafunds" by 2030 could see workers get a £6,000 boost to their retirement pot, the government has said. The UK Treasury confirmed plans on Thursday to expand the number of UK pension megafunds in the next five years. Under reforms set to be introduced through the Pension Schemes Bill, the government said that multi-employer defined contribution and local government schemes will pool to operate at megafund level, managing at least £25bn in assets by 2030. The Treasury said that evidence from Australia and Canada showed that this size enabled pension funds to invest in large infrastructure businesses and private businesses, both boosting the economy and potentially driving higher returns for savers. The government said that this would help drive more than £50bn in investment for UK infrastructure, new homes and fast-growing businesses. This comes on the back of the government's recent announcement of a new agreement, known as the Mansion House Accord, in which Britain's biggest pension funds committed to invest 5% of assets in the UK. On Thursday, the government also published the final report from its Pensions Investment Review, setting out its final policy decisions following on from feedback provided to its consultation. It said that figures from the report showed that these reforms would drive higher returns for savers, "in part by cutting waste in the system". Read more: Trending tickers: Nvidia, Salesforce, HP, Tesla and M&S According to the Treasury, these schemes could be saving £1bn a year by 2030 through economies of scale and improved investment strategies. As a result, the government said average earner who saves over their career could see a £6,000 boost to their defined contribution pension pot. That's based on its estimate that this megafund consolidation could deliver at least a six-basis-point reduction in fees, as well as an increase in allocations to "productive" assets such infrastructure projects. "We're making pensions work for Britain," said chancellor Rachel Reeves. "These reforms mean better returns for workers and billions more invested in clean energy and high-growth businesses — the Plan for Change in action." Meanwhile, deputy prime minister Angela Rayner said that the "untapped potential of the £392bn Local Government Pension Scheme is enormous. Through these reforms we will make sure it drives growth and opportunities in communities across the country for years to come" In Thursday's announcement, the Treasury also said that a "backstop power [is] set to be taken in the Pension Schemes Bill to protect the interests of LGPS [local government pension scheme] members and local taxpayers where necessary by directing an administering authority to participate in a specific investment pool." According to a Financial Times report, officials confirmed that this could include specific targets to UK assets. A spokesperson for the Treasury had not responded to Yahoo Finance UK's request for comment at the time of writing. Matt Tickle, chief investment officer at Barnett Waddingham, said: "The main concern for schemes following the government's wide ranging pension announcements is the looming threat of 'mandation'. "While the chancellor's 'backstop' power – which could compel funds to back British assets – appears to have deterred that threat for now, any move towards mandated investment is a blunt tool, leaving members and society as a whole at risk of poorer outcomes." "That said, the fact that there is time gives some of the government's better policies, around planning reform, value for money and retirement pathways more space to succeed," he added. "If they do, they could generate opportunities that pension schemes will willingly invest in. Efforts to improve the flow of investable opportunities are certainly positive, however there is still an urgent need to focus on reforms rather than enforcing mandates." Helen Morrissey, Yahoo Finance UK columnist and head of retirement analysis at Hargreaves Lansdown, said: "While scale is important in delivering better outcomes for savers, it must not come at the cost of reducing competition, member choice and much needed innovation. This has the ability to really drive up member engagement with their pensions, improve decision making and boost outcomes." "It's important to pick through the detail of the report and later regulation to see how this is supported," she said. "For instance, detail needs to be fleshed out on how the transition pathway for providers looking to reach scale by 2035 will work. "If the market is to thrive, then there needs to be space for smaller, innovative providers. It's a lesson learned in the retail banking market where competition from smaller challenger banks has put pressure on larger incumbents to improve user experience and product offerings." Read more: Odds of more Bank of England interest rate cuts fall as food inflation rises UK 'bargain' stocks that have outperformed the market long-term Trump tariffs to hit UK economy next year, says IMF
Yahoo
34 minutes ago
- Yahoo
Stocks to watch next week: Broadcom, Lululemon, British American Tobacco, Dr Martens and Rémy Cointreau
Tariffs remain in focus as earnings season continues to wind down, but there are still a number of key companies due to report in the coming week. On the back of a strong set of results from chipmaking giant Nvidia (NVDA), attention will now turn to rival Broadcom (AVGO), which is due to report on Thursday. Athletics wear company Lululemon (LULU) is also due to report on Thursday, with focus on its outlook for the current year, after guidance offered at the end of the last financial year failed to impress investors. In London, investors will want to see if British American Tobacco (BATS.L) has continued to generate sales growth from its new categories business, which includes vapes and heated products. Investors will also be keen to see how Dr Martens (DOCS.L) turnaround efforts are progressing when the iconic bootmaker reports its full-year results on Thursday. On the Paris bourse, Rémy Cointreau's ( full-year performance will be in focus, ahead of a new CEO taking the helm at the French spirits company later in June. Here's more on what to look out for: Shares in Nvidia (NVDA) jumped after it reported another blowout quarter on Wednesday, despite the company warning of the impact of export controls that limit its ability to ship products to China. The chipmaker posted revenue of $44.1bn (£32.7bn) for the first quarter, beating expectations of $43.3bn, though earnings per share of $0.81 came in below estimates of $0.93. Derren Nathan, head of equity analysis at Hargreaves Lansdown, said: "The first key takeaway from Nvidia's (NVDA) Q1 print was that demand for accelerated computing remains extremely strong due to the lightning speed roll out of AI. The second is that Nvidia remains the dominant force in this market." "However, with McKinsey predicting a spend of around $7tn to help data centres keep pace with processing demands out to 2030, the market is big enough to accommodate more than just one player," he added. "Broadcom's (AVGO) custom ASIC chips can help hyperscalers lower their average cost of data processing and as such it looks well set to grow its share of the market." Read more: What's behind the surge in AI-related lawsuits? Nathan said that consensus forecasts for Broadcom's (AVGO) second quarter revenue are broadly in line with the company's guidance of approximately $14.9bn, which works out to growth of around 19%. He highlighted that artificial intelligence (AI) is a "growing share of Broadcom's (AVGO) revenue base but there's still more sales coming from non-AI workloads leaving the company exposed to cyclical ups and downs, which is a risk in today's macroeconomic environment. And with 20% of revenue coming from China, markets will be keen to hear the potential impact of export restrictions and tariffs." Nathan added that estimates for Broadcom's (AVGO) third quarter revenue have been falling slightly over the last month and currently stand at $15.8bn. "But with so many moving parts to the picture the company's steer will be a key metric to focus on," he said. Broadcom (AVGO) shares popped after the company posted first quarter results in March that beat on the top and bottom lines, driven by AI chip sales. Adjusted net revenue came in at $14.92bn, versus expectations of $14.61bn, while adjusted earnings per share of $1.60 were ahead of estimates of $1.50. However, fluctuations in the stock since then have left it up just 4.4% year-to-date. Shares in Lululemon (LULU) sunk after its earnings outlook appeared to underwhelm investors, despite the company posting better-than-expected quarterly profits in March. The athletics wear retailer said it expected earnings per share for this year to be in the range of $14.95 to $15.15, which was below expectations of $15.37. On revenue, the company said it expected this to be in the range of $11.15bn to $11.3bn. In addition, Lululemon (LULU) chief financial officer (CFO) told investors on an earnings call that the company was not expecting store traffic to improve this year versus softness out of the gate in the first quarter. Read more: Stocks that are trending today In a note on 12 May, Barclays analysts – which had an "equal weight" rating on Lululemon (LULU) – said they were "cautious" on the stock. They highlighted that the retailer's "We Made Too Much" online clearance section "showed an increase towards the end of the quarter". "During 1Q25, the WMTM category negatively inflected in the final few weeks of the quarter," they said. They said this suggested "potential for weaker exiting trends and building inventory risk". For the first quarter, Lululemon (LULU) said it expected net revenue to come in between $2.34bn and $2.36bn, which would represent growth of 6% to 7%. Diluted earnings per share are expected to be in the range of $2.53 to $2.58 for the quarter. On Wednesday, British American Tobacco (BATS.L) announced that it had sold a 2.5% stake in Indian consumer goods company ITC ( which was worth $1.5bn, according to a Reuters report. The company said that the transaction would give it "greater financial flexibility as it delivers on its commitment to invest behind transformation, deleverage and enhance shareholder returns." The tobacco giant also said that the net proceeds from the trade would be used to extend its existing share buyback programme by an additional £200m ($269.5m), taking the total amount it repurchases in 2025 to £1.1bn. That was up on £900m BAT (BATS.L) said it planned to undertake in buybacks this year back in its preliminary results release in February. Shares tumbled after the release of those results, in which the company flagged £6.2bn ($7.7bn) hit, from a proposed settlement of a long-running lawsuit in Canada. With this provision, the company posted reported profit from operations for the year of £2.74bn. Read more: Government 'megafund' pension plans could give £6k boost to savers BAT (BATS.L) posted a 5.2% decline in reported revenue for the year at £25.9bn, driven by the sale of its businesses in Russia and Belarus in September 2023 and transnational foreign exchange headwinds. However, the company saw 8.9% organic growth from revenue in its new categories business at £3.4bn. Nathan, of Hargreaves Lansdown, said that the company "heads into its upcoming [first-half] trading update with investor attention firmly on its ability to navigate persistent industry headwinds". "Regulatory pressures and rising tobacco taxes continue to weigh on the outlook," he said. "As such, this year's guidance for around 1% sales growth and 1.5–2.5% profit growth currently stands below the group's medium-term targets. The upcoming update will be closely watched for signs that 'new categories' can deliver more meaningful growth and help offset the structural decline in traditional tobacco." In addition, Nathan said that investors "will be watching closely to see if US action to crackdown on illegal competition has had any impact and whether the lifting of a proposed ban on menthol cigarettes has helped the outlook". According to consensus forecasts provided by the company on its website, analysts expect full-year total revenue for 2025 to come in at £26.2bn, including £3.88bn from new category business. Shortly after taking over as Dr Martens (DOCS.L) CEO in January, Ije Nwokorie said in a third quarter trading update that the bootmaker had made "good progress" on turning round performance in the US. He said that the team were focused on "returning the business to sustainable and profitable growth". In the third quarter, Dr Martens (DOCS.L) reported 3% growth in group revenue at £267m, with a 4% increase in direct-to-consumer business in the Americas. "Dr Martens (DOCS.L) is expected to deliver more evidence that it is pulling itself up by its bootstraps and the turnaround is lacing together," said Susannah Streeter, head of money and markets at Hargreaves Lansdown. "It's been reducing inventories and debt, preserving cash and stabilising the business overall." Stocks: Create your watchlist and portfolio "The iconic footwear company has found it hard going stomping new fashion ground overseas, with the US, its biggest market, proving particularly tough," she said. "But in the key autumn/winter season, there were signs that increased investment in marketing was paying off, with new styles winning fans. It's trying to get the heritage models and new innovations in the fashion market." Streeter said that the "performance of the last quarter will be a test" for new CEO Nwokorie. She said that the company's "strategy includes new store roll outs and increasing the direct-to-consumer mix, as well as improving the quality and depth of wholesale distribution. "It's hoped that the Docs will also take a step forward with the appointment of a new chief brand officer, Carla Murphy, a former Adidas ( global executive who also has experience at VF Corporation, the American global apparel and footwear company." In its January trading update, company didn't offer specifics on its guidance for the full year but said its outlook remained unchanged and that it was on track to achieve its objectives. Despite signs of turnaround progress, the stock is still down nearly 19% year-to-date. French cognac maker Rémy Cointreau ( announced on Wednesday that it had appointed Franck Marilly as the company's new CEO, taking over from Eric Vallat, who said last month he would be stepping down. Marilly, who assumes the role on 25 June, has previously worked for Japanese beauty brand Shiseido (4911.T), luxury fashion house Chanel and consumer goods giant Unilever (ULVR.L). The news comes as Rémy Cointreau ( navigates challenges around trade tensions with both the US and China, two of its key markets. In a fourth quarter sales update in April, Rémy Cointreau ( posted an 18% fall in full-year sales at €984.6m (£827.6m). The company flagged a "steep decline" in sales of cognac in China in the fourth quarter, which it said was partly down to "harsh market conditions", among other factors. Read more: UK 'bargain' stocks that have outperformed the market long-term In January, China launched an anti-dumping investigation on brandy imported from the European Union (EU), which was extended in April and included the imposing of temporary duties on imports of brandy. The probe was considered to be in response to EU duties on Chinese electric vehicles. Rémy Cointreau ( said in its April sales update that if the provisional duties were confirmed, the company would "trigger its action plan to mitigate the effects starting in fiscal 2025-26. The impact on fiscal year 2024-25 is marginal." In addition, there is also uncertainty around US tariffs on the EU, with talks between the two ongoing, after president Donald Trump hit pause on his threat to impose 50% duties on the bloc. Investors will be looking at Rémy Cointreau's ( final full-year results on Wednesday for any commentary around the potential impact of these tariff challenges in the year ahead. The company said in April that a €50m (£42m) cost-cutting plan would help protect its operating margin, expecting this to come in between 21% and 22% for the year. It also reiterated its financial targets for 2029-30 of hitting a gross margin of 72% and an operating margin of 33%. Monday 2 June Sirius Real Estate (SRE.L) Campbell's Co (CPB) Tuesday 3 June Chemring (CHG.L) Pennon (PNN.L) Gooch & Housego (GHH.L) Crowdstrike Holdings Inc (CRWD) Ferguson Enterprises Inc (FERG) Dollar General Corp (DG) Hewlett Packard Enterprise (HPE) Nio Inc (NIO) Signet Jewelers (SIG) Wednesday 4 June Paragon Banking (PAG.L) B&M European Value Retail (BME.L) DiscoverIE (DSCV.L) Ramsdens (RFX.L) Dollar Tree Inc (DLTR) GameStop (GME) Thursday 5 June Mitie (MTO.L) Workspace (WKP.L) Young's & Co Brewery (YNGN.L) Fevertree (FEVR.L) Fastenal (FAST) DocuSign (DOCU) Brown-Forman (BF-B) Ciena (CIEN) Wizz Air Holdings (WIZZ.L) CMC Markets (CMCX.L) Friday 6 June ABM Industries Inc (ABM) Caffyns (CFYN.L) You can read Yahoo Finance's full calendar here. Read more: How getting ahead on your tax return can help cut your tax bill Odds of more Bank of England interest rate cuts fall as food inflation rises Trump tariffs to hit UK economy next year, says IMF
