Investors hope Nvidia makes a statement

Nvidia’s 2025 has been a rollercoaster. The chip giant kicked off the year at a high, reaching a record share price of $153.13 in early January. But that momentum quickly faltered when Chinese AI startup DeepSeek announced it could develop large language models more cost-effectively than Nvidia sparking fears about competition and sending ripples through the market.

Adding to the headwinds, the Biden administration (and later the Trump administration) intensified restrictions on the export of Nvidia’s H20 GPUs to China. These GPUs were seen as a workaround to previous trade limitations. As a result, Nvidia stock nosedived, bottoming out at $96.30 by April 8 a 28% drop for the year.

While Nvidia’s stumble was largely tied to geopolitical and trade concerns, the market has begun to recover. By late May, Nvidia’s stock had rebounded to $131.29, a 36% surge in just over a month. Still, shares remain down 2.2% from the start of the year and 14.3% below the January peak.

All Eyes on Nvidia’s Earnings

Investors are now focused on Nvidia’s fiscal first-quarter earnings, expected after the market closes on Wednesday. Wall Street is predicting earnings of $0.73 per share a 16% year-over-year increase and revenue of $43.4 billion, up 66% from last year.

Notably, the earnings forecast has been revised downward from $0.93 per share just two months ago, reflecting market caution. But if Nvidia can show resilience and progress in its efforts to secure U.S. export licenses or regain market confidence in its AI dominance, investors may respond positively.

CEO Jensen Huang has remained a prominent figure in tech headlines, recently giving the keynote address at Nvidia GTC 2025. Under his leadership, Nvidia’s market cap has rebounded to $3.2 trillion — just behind Microsoft’s $3.25 trillion and ahead of Apple’s $2.92 trillion.

Market Rebound on the Horizon?

Markets are also eyeing a potential rebound after last week’s losses. Futures suggest stocks may open higher on Tuesday following President Trump’s announcement that 50% of planned tariffs on European imports would be delayed until at least July 9. Some analysts speculate that even this date could be flexible, providing room for additional relief.

The Dow, S&P 500, Nasdaq, and Russell 2000 all posted losses last week, dragged down by trade tension and economic uncertainty. The 10-year Treasury yield ended the week at 4.52%, continuing to pressure mortgage rates and dampen consumer sentiment.

A Packed Week for Earnings

The upcoming week is packed with major earnings reports especially in the tech and retail sectors. Nvidia will be joined by:

• Salesforce (CRM) – Reporting Wednesday after the bell
• Dell Technologies (DELL) – Thursday after close
• Marvell Technology (MRVL) – Thursday after close
• Zscaler (ZS), Synopsys (SNPS), and HP Inc. (HPQ) – Also reporting mid-to-late week

Costco Headlines Retail Reports

Costco is another major name drawing investor attention. Set to report after Thursday’s close, the wholesale giant is expected to post earnings of $4.21 per share on $62.9 billion in revenue year-over-year increases of 11.4% and 7.4%, respectively. Costco’s stock has risen 10.1% so far in 2025, making it the third-largest retailer by market cap behind Amazon and Walmart.

Other retailers releasing earnings this week include:

• AutoZone (AZO) – Tuesday morning
• DICK’s Sporting Goods (DKS), Macy’s (M) – Wednesday morning
• The Gap (GPS), Ulta Beauty (ULTA) – Thursday after close
• Burlington Stores (BURL), Foot Locker (FL) – Thursday morning

Hoping for Calm in Volatile Markets

Investors are hoping that trade tensions cool this week and markets can stabilize. With interest rates and inflation still under scrutiny, any further movement in yields could keep investors on edge.

Ultimately, Nvidia’s earnings may serve as a bellwether not just for the semiconductor industry but for tech sentiment more broadly. If the company delivers solid results and shows progress in overcoming export challenges, the market could reward it with a continued rally. ➡️For more information about Finance, visit Nadlan Capital Group