In today’s markets, Nvidia’s (Nasdaq: NVDA) quarterly earnings are being billed as a market event, not just earnings as usual. The Nasdaq Composite has been under great pressure, including yesterday’s drop of over 1%, but is battling back today for a nearly 1% advance. Today, the major stock market indices are reflecting cautious optimism, buoyed by Nvidia stock’s 3% jump in early trading that is lifting sentiment.

With a lot banking on Nvidia’s performance, let’s check the expectations. Wall Street is looking for Nvidia to report EPS of $0.85 per share, reflecting a 64% increase year-over-year. Revenues are expected to be $38.1 billion, which would be a massive 72% year-over-year increase.

If Nvidia comes through, it would set the bar higher with fresh records over the previous quarter. The markets have a reason to be optimistic, considering Nvidia has managed to surpass consensus estimates on both the top and bottom lines for the past eight quarters. Whether it can keep the trend going will be revealed in a few hours.

Here’s a look at the performance as of morning trading:

Dow Jones Industrial Average: Up 196.94 (+0.45%)
Nasdaq Composite: Up 203.80 (+1.08%)
S&P 500: Up 45.37 (+0.75%)

Big Tech, Big Spending

As Bloomberg reported, Big Tech has pledged over $1 trillion in U.S. capex spending. In the latest commitment, Apple (Nasdaq: AAPL) has earmarked a whopping $500 billion in U.S. tech spending over four years on AI servers, hiring talent, etc. The stock is down 1.4% as of mid-morning trading.

The Stargate project has committed up to $500 billion to be directed toward powerful AI data centers in Texas. Companies like Softbank, Oracle (NYSE: ORCL) and MGX are taking the lead on Stargate. Not to be outdone, Amazon (Nasdaq: AMZN) boss Andy Jassy suggested that the company is doling out more than any of its peers in AI capex from “top to bottom.” Amazon stock is up about 2% on the day.

Market Movers

General Motors (NYSE: GM) is popping by 7% on news that the company is returning more value to shareholders through a hiked cash dividend and $6 billion share buyback from its balance sheet. The Detroit-based automaker raised its dividend by 25% to $0.15 per share, rising to the standard set by industry competitor Ford (NYSE: F).

Super Micro Computer (Nasdaq: SMCI) met its closely watched filing deadline for 2024 financial results with the SEC, and the stock is soaring 19% in a relief rally.

 

 

 

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