The latest earnings from Nvidia (NVDA) is the focus for investors this week, with the chipmaker set to release its third-quarter results on Wednesday 20 November.
The demand for Nvidia’s chips amid the AI boom has continued to drive shares higher, seeing the company recently overtake Apple (AAPL) as the world’s most valuable company, with a market capitalisation of $3.48tn (£2.75tn).
Shares were muted in pre-market trading on Monday, following a report of an issue relating to its new AI Blackwell chips. The Information reported on Sunday that its Blackwell graphics processing units were facing issues with overheating when connected to together in its customised server racks. A spokesperson for Nvidia had not responded to Yahoo Finance UK‘s request for comment at the time of writing.
Derren Nathan, head of equity research at Hargreaves Lansdown, said: “Markets forecasts expect that number to be a little higher. If NVIDIA continues its strong run of beating market expectations, things could be better still.”
In the second quarter, revenue came in at $30bn, which was 122% higher than the previous year.
“There’s likely to be more emphasis however on the outlook for the final three months of the year, where consensus is currently looking for revenue of $36.6bn,” said Nathan.
Shares in embattled server maker Super Micro Computer (SMCI) were up nearly 15% in pre-market trading on Monday, following a report that it was expected to submit a plan for its delayed annual report.
Barron’s reported that Super Micro planned to file the plan by Monday, which could help it avoid delisting from the Nasdaq (^IXIC).
A spokesperson for Super Micro had not responded to Yahoo Finance UK‘s request for comment at the time of writing.
Last week, Super Micro said it would be delaying the filing of its finance report for the September quarter, having already failed to file its annual report.
Ernst & Young (EY) recently resigned as Super Micro’s auditor, saying it was “no longer be able to rely on management’s and the audit committee’s representations and to be unwilling to be associated with the financial statements prepared by management”.
EY’s resignation came two months after a report from Hindenburg Research alleged, among other things, “accounting manipulation” at Super Micro.
Shares in Palantir Technologies (PLTR) hit a record high on Friday, after the developer of software platforms for data analytics announced that it would be transferring its stock listing to the Nasdaq.
The stock closed Friday’s session up 11%, after Palantir said it would be moving its listing from the New York Stock Exchange to the Nasdaq on November 26.
Shares had already been on the rise after the company released a strong set of earnings.
In the third quarter, Palantir’s revenue came in at $725.5m, while reporting adjusted earnings per share of $0.10, which both topped estimates.
Palantir also raised its full-year revenue guidance to an expected figure of between $2.805bn and $2.809bn for 2024.
Alex Karp, CEO of Palantir Technologies, said: “We absolutely eviscerated this quarter, driven by unrelenting AI demand that won’t slow down. This is a U.S.-driven AI revolution that has taken full hold. The world will be divided between AI haves and have-nots.”
Indian conglomerate Reliance Industries (RELIANCE.NS) and Disney (DIS) announced towards the end of last week that they had completed the $8.5bn merger of their Indian media assets, to make the company Jio Star.
Reliance Industries – which is run by Asia’s wealthiest man Mukesh Ambani – and Disney won regulatory approval for the merger in August, overcoming concerns about their dominance with cricket broadcasting rights.
The merged group, which will be India’s largest entertainment company, will be split into three divisions: entertainment, digital and sports.
In a statement, Ambani said: “With the formation of this JV (joint venture), the Indian media and entertainment industry is entering a transformational era.”
“Our deep creative expertise and relationship with Disney, along with our unmatched understanding of the Indian consumer, will ensure unparalleled content choices at affordable prices for Indian viewers.”
Shares in Reliance Industries were flat on Monday and Disney’s stock was also muted in pre-market trading.
Boohoo said it had raised a total of £39.3m, which included nearly £400,000 in a retail offer of its shares.
AJ Bell investment director Russ Mould pointed out that the firm had offered up to £6m worth of shares, but with order of £388,508, this represented just 6.5% of the available stock.
“The general public didn’t fancy dressing up their investment portfolio with Boohoo shares, judging by the shocking take-up of the company’s retail share offering,” he said. “While institutional investors were keen to buy more stock, the retail component fell flat on its face.”
“Retail investors might have been turned off by the stock being priced at a premium to the market value at the time of the fundraise,” Mould said. He explained that share placings at a premium “aren’t that common, certainly not with a company going through a bad patch such as Boohoo”.
Last week, Boohoo reported revenue in the first half of the year had fallen 15% to nearly £620m, compared with the same period last year. The company posted a 19% fall in gross profit to £314.4m.
Boohoo has been embroiled in a public feud with Mike Ashley’s Fraser Group, after the retail mogul requested to be installed as the company’s CEO.
Last wee, in a circular to investors, Boohoo said Ashley was “not a suitable appointment” to its board.
