Wednesday preview: Nvidia results in the spotlight

(Sharecast News) - US chip giant Nvidia is due to release quarterly results after the close on Wednesday. Kathleen Brooks, research director at XTB, said the market is expecting another "monster" report, as the company continues to benefit from AI hyperscalers and their extended "capex spending binge".

"Revenues are expected to come in at $65.8bn, with net income at $37.4bn. This is a significant uplift from the $57bn revenue reported for the prior quarter," she said.

"GB 200 shipments are expected to boost sales, and although China sales are still effectively offline, sovereign demand for Nvidia chips and non-cloud service providers are expected to provide healthy income streams. Gross margin could exceed estimates, the market expects 75% in gross margin for last quarter, up from 73.4%, and the outlook is also expected to remain strong.

"The continued spend from the AI hyperscalers, and the increased uptake of AI tools, should reinforce a positive outlook for Nvidia's future revenues, and this could support its share price.

"Nvidia's share price is flat YTD, but it is higher by 6% in the past month and it is outperforming the major US indices. Along with Apple, it is the top performer in the Magnificent 7, and we expect this to continue, as other members of the Mag 7 could come under sustained pressure in the foreseeable future."

In the UK, Diageo, Haleon, St James's Place, Hiscox, Shaftesbury Capital, Hammerson, Morgan Sindall and Aston Martin Lagonda are due to report.

As far as drinks company Diageo is concerned, Verushka Shetty, equity research analyst at Morningstar, noted that in its first-quarter results last year, it cut full-year guidance, which made sense given the current environment.

"The company now expects a slight decline in organic revenue year on year and low- to mid-single-digit operating profit growth. Previously, it had guided to organic net sales growth in line with fiscal 2025 and mid-single-digit organic operating profit growth. We do not expect a meaningful change here," she said.

"We continue to see the US and China as the main drags on performance. Pernod also reported softness in both markets last week, while performance was mixed in other regions."

On the macro front, German fourth-quarter GDP figures will be published at 0700 GMT, with January eurozone inflation data will be out at 1000 GMT.

Wednesday February 25

INTERIMS

Avingtrans, Diageo, First Tin

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Crude Oil Inventories (US) (15:30)

GFK Consumer Confidence (GER) (07:00)

Gross Domestic Product (GER) (07:00)

MBA Mortgage Applications (US) (12:00)

Q4

Lion Finance Group

GMS

Ariana Resources

FINALS

AB Ignitis Grupe GDR (Reg S), AFC Energy, Aston Martin Lagonda Global Holdings, Convatec Group , Haleon , Hammerson, Hiscox Limited (DI), HSBC Holdings, International Personal Finance, Morgan Sindall Group, Riverstone Credit Opportunities Income, Shaftesbury Capital, St James's Place, Valterra Platinum Limited (DI)

ANNUAL REPORT

AB Ignitis Grupe GDR (Reg S)

AGMS

Bankers Inv Trust, Image Scan Holdings, JPMorgan Asia Growth & Income

TRADING ANNOUNCEMENTS

Hays