It’s Nvidia week — but is AI hype peaking?
- NexxtGen Markets
- 3 days ago
- 4 min read
Good morning, here's the latest Global Financial Markets update from Steve Halls at NexxtGen Markets here in the City of London...
Last week echoed the old adage — “Sell in May and go away.” The markets took a sharp turn lower: the Dow shed 2.5%, the S&P 500 lost 2.6%, and the Nasdaq followed closely with a 2.5% drop. Bond yields surged midweek, triggering a selloff in equities as investors braced for inflation surprises and fresh trade tensions.
This week, however, could change the tone. Markets were closed Monday for Memorial Day, but futures pointed higher on Tuesday as traders reacted to President Trump’s decision to delay the proposed 50% tariff on EU imports until 9 July. That buys negotiators time — and could calm equity markets temporarily.
But make no mistake: inflation and interest rate expectations are still front and centre.
🏆 Nvidia earnings and macro data dominate the week
All eyes are on Nvidia as it prepares to report Q1 2025 earnings after the close on 28 May. The AI powerhouse has become the face of this market cycle, and its ability to sustain momentum is crucial to the broader tech rally.
Yet, even as its chips power the world’s most advanced models, some analysts warn expectations are simply too high. The stock recently dipped despite beating estimates, suggesting sentiment may be stretched.
Meanwhile, macro traders will be watching Friday’s PCE inflation print for clues on whether the Federal Reserve will delay or accelerate any policy adjustments. On Tuesday, a raft of US data, including durable goods orders, consumer confidence, and speeches from Fed Presidents Kashkari and Williams, could shift the narrative once more.
📈 Market movers: From biotech surges to retail woes
Some notable names were on the move last week:
A big biotech win, a strong IPO debut, and some pain for industrial names weighed by macro headlines.
💡 Corporate earnings to watch this week
Despite the bank holiday, it’s a heavy week on the earnings front. Key companies to monitor include:
Nvidia (NVDA) – Q1 earnings on 28 May. Analysts expect revenues of $43bn. A "make or break" moment for the AI trade.
Salesforce (CRM) – Reporting the same day. Investors are watching for signs of enterprise software spending resilience.
HP Inc (HPQ) – Outlook may reflect the status of consumer and business IT demand.
Costco (COST) – Results due 29 May. Focus is on consumer spending, membership growth, and discretionary trends.
Dell Technologies (DELL) – Also on 29 May. Investors will scrutinise AI infrastructure demand and enterprise spending on high-performance servers.
UiPath & C3.ai – Provide a broader view of automation and AI services.
🔍 Deep dive: Movers and shakers to watch
Dell (DELL)▲ 0.14% | $112 - Dell’s new AI-powered servers could be a game-changer. Investors will be watching enterprise orders and margins, especially in the data centre segment.
Costco (COST)▼ -0.95% | $1009 - A bellwether for American consumer health. Analysts are tracking inflation impacts on bulk buying, memberships, and discretionary categories.
Nvidia (NVDA)▼ -1.16% | $131 - The world’s most valuable semiconductor stock, but also potentially the most overhyped? Watch for Q1 results, any surprises on forward guidance, and follow-up from CEO Jensen Huang’s Computex presentation.
Salesforce (CRM)▼ -3.63% | $273 - With demand for AI-powered CRM tools rising, will Salesforce benefit — or struggle with broader macro caution?
📆 What’s coming up today?
12:30 GMT – US Durable Goods Orders (April)Forecast: -6.8% MoM. A sharp fall expected after a March aircraft-driven spike. Could impact USD strength.
14:00 GMT – US Consumer Confidence (May)Expected: 84, down from 86. A key barometer for consumer sentiment and retail spending.
Also watch for:
Case-Shiller & FHFA home price data
Dallas Fed Manufacturing Index
$69B 2-year note auction — bond markets are very much in play
🚨 In case you missed it: Volvo cuts 3,000 jobs
Volvo Cars announced a significant restructuring effort with 3,000 job cuts (15% of its office workforce). The move is part of a $1.89B cost-saving initiative amid a cooling EV market, tariff uncertainties, and shifting consumer preferences. Most layoffs will affect operations in Sweden.
🔐 Cybersecurity spotlight: Okta earnings preview
Okta (OKTA)Reporting: Tuesday 27 May, after market closeExpected EPS: $0.77 (up 18% YoY)Revenue: $680.3 million (up 10%)
Okta provides identity and access management solutions — a key pillar of modern cybersecurity infrastructure. With growing demand from hybrid workforces and enterprise cloud environments, results will be closely monitored.
🧠 Final thought: AI fatigue or long-term revolution?
As AI continues to dominate headlines, some are asking: are we in the early innings, or are valuations getting ahead of fundamentals? This week may offer clues. If Nvidia misses or merely meets expectations, we could see a broader reassessment of risk in growth-heavy portfolios.
Until then, stay focused, stay diversified, and keep your eyes on the data.
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