Nvidia results, Anthropic IPO pose tests for tumultuous AI trade
QQQ•Nvidia’s quarterly results are due Tuesday, followed by the expected start of trading in Anthropic on Thursday, as investors assess the AI trade. US retail sales, Federal Reserve minutes and results from major retailers are also due next week.
1. AI trade faces tests
Nvidia’s quarterly results and Anthropic’s expected IPO debut next week will test investor sentiment toward AI, after doubts about the sustainability of massive AI investment spending unsettled the trade. Nvidia shares fell this week following controversies involving CEO Jensen Huang, who stepped down on Thursday.
2. Nvidia earnings in focus
Analysts expect Nvidia to report fiscal third-quarter earnings growth of 90% on revenue of $109 billion. Interim CEO Colette Kress, previously the company’s chief financial officer, will be under pressure to shore up investor confidence. Nvidia’s market capitalization fell from about $5.8 trillion in early October to roughly $4 trillion as of Thursday.
3. Economic and retail updates
Anthropic’s IPO is set to value the company at up to $1.4 trillion, with the company and some investors aiming to raise up to $64.4 billion by selling 825 million shares. US retail sales are due Tuesday and Federal Reserve meeting minutes on Wednesday; Walmart, Target, Home Depot and Lowe’s also report results next week.
