This year’s market darlings will be in the spotlight again in the coming week. Nvidia’s much-anticipated fiscal second-quarter results are due out on Wednesday, ending an eventful summer for the stock. After hitting record highs in 2024 (topping $140 per share intraday in June), the AI chip maker began a sharp pullback this month. On August 5, Nvidia’s stock price fell to $90.69 per share due to a massive market sell-off and reports of delays in the launch of Blackwell chips. Now, as traders rush to buy the dip, the stock price has soared more than 40% and currently stands at around $125 per share. Nvidia’s year-to-date mountain Nvidia Wall Street is optimistic about Nvidia’s earnings results next week, arguing that any problems with its next-generation artificial intelligence chips will not undermine the profit potential of the company that basically has a monopoly on the market. “Nvidia is in the enviable position of leveraging the best chips they have,” said Piper Sandler senior research analyst Harsh Kumar, who has a buy rating on the stock with a $140 price target. “Blackwell is even better than the previous generation – far better than previous generations.” In fact, CEO Jensen Huang told CNBC’s Jim Cramer in March that the latest generation of chips was R&D costs are approximately $10 billion, which represents a significant barrier to entry for any serious competitor. Still, Kumar expects the results may have little impact on stocks or the broader market, given the high expectations ahead of the results. Kumar said Nvidia’s previous revenue exceeded expectations by about $2 billion, but the company’s revenue may be slightly lower than that because of delays. “As long as Nvidia in its comments can give people confidence that the business won’t be taken away by someone else, … the stock should be a hold,” Kumar said. “It might be flat, but it should absolutely maintain its value.” Regardless. , investors may not need much convincing to take a position in this popular stock, which is up more than 160% this year. Louis Navellier, chairman and founder of Navellier & Associates, said: “I am fully invested in Nvidia. I made 1,000% in the company a few years ago. I quit. I came back on May 10, 2019, so I made a second Up 3,000%, and I’m not selling this thing at all PCE Next Friday’s personal consumption expenditures (PCE) price index for July may provide further confirmation that the Fed is well on track to achieve its 2% inflation target as the central bank prepares to do so. September rate cut – Chairman Jerome Powell said in his Jackson Hole speech on Friday: “The time has come for a policy change. “The way forward is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook and the balance of risks.” Economists surveyed by FactSet expect PCE to grow 0.2% quarterly and 2.6% annually. . This compares to increases of 0.1% and 2.5% respectively in the previous figures. Weaker inflation data means investors can turn their attention to the labor market, such as next month’s jobs report, which could determine whether the Federal Reserve cuts interest rates by 25 percentage points or 0.5 percentage points in September. Markets are now pricing in the possibility that the key overnight lending rate will fall 1 percentage point by year-end to a range of 4.25%-4.5%, CME’s FedWatch tool shows. Late Summer Despite a tumultuous start to August, the major stock indexes are still set for a positive month. As of Friday’s close, the S&P 500 was up 2% for the month and the Nasdaq was up 1.6%. The Dow Jones Industrial Average rose 0.8%. Wall Street expects stocks to likely move higher from here, although the road between now and the end of the year may be bumpy. Not only are investors heading into a seasonally weak month for stocks, they are also heading into the U.S. presidential election and grappling with ongoing geopolitical risks around the world. “I think assuming the Fed still cuts interest rates, the path of least resistance still exists,” said David Miller, chief investment officer of Catalyst Funds. “I think the bigger question is that maybe there are other sudden events.” Miller said , he will focus on how presidential candidate Vice President Kamala Harris and former President Donald Trump outline their economic policies. He is also keeping a close eye on how the Russia-Ukraine war might affect oil prices. Elsewhere, investors will get some August consumer confidence data next Wednesday. Other noteworthy earnings results include tech companies Salesforce and CrowdStrike, as well as consumer products companies such as Campbell Soup, Dollar General and Ulta Beauty. One week ahead calendar all times are Eastern Time. Monday, August 26 8:30 AM Durable Orders (July) 10:30 AM Dallas Fed Index (August) Tuesday, August 27 9 AM FHFA Home Price Index (June) 9 AM S&P /Case -Shiller Home Price Index (June) ) 10am Consumer Confidence Index (August) 10am Richmond Fed Index (August) There is no important economic data on Wednesday, August 28th. Earnings: Nvidia, Bath & Body Works, JM Smucker, Salesforce, CrowdStrike, NetApp, HP Thursday, August 29, 8:30 AM Continuing Jobless Claims (08/17) 8:30 AM GDP Second Preliminary Survey ( Q2) 8:30 AM Initial Claims (08/24) 8:30 AM Preliminary Wholesale Inventory Data (July) 10 AM Pending Home Sales Index (July) Earnings: Campbell Soup, Best Buy, Dollar General, Autodesk, Ulta Beauty, Lululemon Athletica Friday, August 30, 8:30 AM PCE Deflator (July) 8:30 AM Personal Consumption Expenditures (July) 8:30 AM Personal Income (July) 9:45 AM Chicago PMI (August) 10 a.m. Michigan Sentiment Finale (August)
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