This year's market darling will once again take center stage in the week ahead. Nvidia's hotly-anticipated fiscal second-quarter results are on deck Wednesday , coming at the end of what has been an eventful summer for the stock. After blowing past record after record in 2024 — topping $140 per share on an intraday basis in June — the AI chipmaker started this month by pulling back in a major way.
On Aug. 5, Nvidia shares fell to as low as $90.69 per share amid a broader market sell-off, as well as reports of delays on its Blackwell chips.
Now, they've surged more than 40%, to about $125 per share currently, as traders rushed in to buy the dip. NVDA YTD mountain Nvidia Wall Street is bullish heading into Nvidia's earnings results next week, figuring any hiccups to its next generation AI chips does little to dim the earnings potential of a company that essentially has a monopoly on the market. "Nvidia is in this enviable position where they make the best of the best chips," said Harsh Kumar, senior research analyst at Piper Sandler, who has a buy rating and a $140 price target on the stock.
"And the Blackwell is even superior to the previous generation — massively superior to previous generations." In fact, CEO Jensen Huang told CNBC's Jim Cramer in March the newest generation of its chips cost around $10 billion in research and development, a huge barrier to entry for any viable competitors. Still, Kumar expects the results may do little to move the stock or the broader market given the high expectations ahead of the results.
Nvidia, which has previously beat estimates by about $2 billion , may beat by just shy of that number as it contends with delays, Kumar said. "As long as Nvidia, in its commentary, is able to convince people that business is not going away to somebody else, ..
. the stock should hold," Kumar said. "Could be flat, but it should definitely hold its value.
" Regardless, investors may not need much convincing holding onto their positions in the hot stock, which is higher this year by more than 160%. Louis Navellier, chairman and founder of Navellier & Associates, said: "I'm all in on Nvidia. I made 1,000% in it years ago.
I got out. I got back in by May 10, of 2019, so I'm up 3,000% the second time. And I don't plan to sell this thing at all.
" PCE The July personal consumption expenditures price index (PCE) next Friday could serve as further confirmation the Federal Reserve is well on its way to its 2% inflation objective, as the central bank readies to cut rates in September — which Chair Jerome Powell on Friday indicated in his Jackson Hole speech. "The time has come for policy to adjust," Powell said. "The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks.
" Economists polled by FactSet anticipate PCE to show increases of 0.2% month on month and 2.6% from the year-earlier period.
That's compared to increases of 0.1% and 2.5% in the prior reading, respectively.
A softer inflation print could add to confidence investors can turn their attention to the labor market, such as next month's jobs report, which could determine whether the Fed lowers rates by a quarter- or half-percentage point in September. The CME FedWatch Tool shows markets are currently pricing in the likelihood the key overnight lending rate will fall one percentage point by the end of the year to a range of 4.25%-4.
5%. End of summer In spite of the tumult to start August, the major averages are set to close out a winning month. As of midday Friday, the S & P 500 and Nasdaq Composite were higher by more than 1%, each, month to date.
The Dow Jones Industrial Average had gained 1%. Wall Street anticipates that stocks could go higher from here, though the road from now to the end of the year could be bumpy. Not only are investors about to start a seasonally weak month for stocks, they're heading into the U.
S. presidential election, as well as ongoing geopolitical risks around the globe. "I think the path of least resistance is still up, assuming the Fed still cuts rates," David Miller, chief investment officer at Catalyst Funds.
"I think the bigger question is, maybe, is there some other event that comes out of the blue." Miller said he will be monitoring how the presidential candidates Vice President Kamala Harris and Former President Donald Trump will outline their economic policies. He's also keeping an eye on how the Russia-Ukraine war could impact the price of oil.
Elsewhere, investors will get some August consumer sentiment data next Wednesday. Other notable earnings results include tech names Salesforce and CrowdStrike, as well as consumer names such as Campbell Soup, Dollar General and Ulta Beauty. Week ahead calendar All times ET.
Monday Aug. 26 8:30 a.m.
Durable Orders (July) 10:30 a.m. Dallas Fed Index (August) Tuesday Aug.
27 9 a.m. FHFA Home Price Index (June) 9 a.
m. S & P/Case-Shiller Home Price Indices (June) 10 a.m.
Consumer Confidence (August) 10 a.m. Richmond Fed Index (August) Wednesday Aug.
28 No notable economic data. Earnings: Nvidia , Bath & Body Works , J. M.
Smucker , Salesforce , CrowdStrike , NetApp , HP Thursday Aug. 29 8:30 a.m.
Continuing Jobless Claims (08/17) 8:30 a.m. GDP second preliminary (Q2) 8:30 a.
m. Initial Claims (08/24) 8:30 a.m.
Wholesale Inventories preliminary (July) 10 a.m. Pending Home Sales Index (July) Earnings: Campbell Soup , Best Buy , Dollar General , Autodesk , Ulta Beauty , Lululemon Athletica Friday Aug.
30 8:30 a.m. PCE Deflator (July) 8:30 a.
m. Personal Consumption Expenditure (July) 8:30 a.m.
Personal Income (July) 9:45 a.m. Chicago PMI (August) 10 a.
m. Michigan Sentiment final (August).
