TLDR
- Nvidia reports earnings after the close, with analysts expecting $1.78 per share and revenue of $79.2 billion, up nearly 80% year over year
- Jim Cramer warns that Nvidia often rises and then faces a “relentless hit” as investors sell aggressively
- ASML stock jumped 6.7% after UBS rerated it as a top pick for European semiconductors, raising its price target to 1,900 euros.
- TD Cowen raised its price target on the strategy to $400, maintaining a Buy rating with an implied upside of more than 140%.
- Target beat earnings expectations by $1.71 per share vs. $1.46 estimate, raising full-year sales growth forecast
Nvidia: Biggest earnings report of the week
Nvidia It is the most watched stock on the market today. The leading AI chip company reports earnings after the close, and expectations are high.
Analysts expect earnings of about $1.78 per share on revenue of about $79.2 billion. This would represent revenue growth of approximately 80% compared to last year.
Data center revenue is the key number to keep an eye on. Demand for AI chips from cloud companies, AI labs and large enterprises has been the main driver of Nvidia’s growth in recent quarters.
Investors also want updates on gross margins, demand for Blackwell chips, the impact of Chinese export restrictions, and guidance for next quarter.
Will a good report be enough?
Jim Cramer A pattern worth seeing has been flagged. Nvidia’s earnings history often includes an initial rally, followed by a “relentless beating” as investors sell aggressively, he said.
His point is that even a strong report may not lift a stock if the market is already expecting perfection.
Competition is also on investors’ minds. Custom AI chips from major cloud customers, AMD, and internal hardware projects from major tech companies are part of the conversation.
If Nvidia provides strong guidance and addresses concerns about China and margins, it could support broader AI trading. If the stock sells off after the results, pressure could spread to semiconductors and the Nasdaq.
ASML: European chip stocks rise after UBS upgrade
ASML It rose 6.7% after UBS reinstated the stock as a top pick for European semiconductors. UBS raised its price target to 1,900 euros from 1,600 euros.
UBS expects ASML earnings to remain ahead of consensus through 2027 and 2028, driven by continued demand for advanced chipmaking tools.
Why ASML is important for AI trading
ASML manufactures lithography systems, which are essential for producing the world’s most advanced chips. Without these machines, chipmakers cannot make the processors that power AI workloads.
High demand for AI means chipmakers need more production capacity. This places ASML at the center of the global semiconductor supply chain.
The 6.7% move also showed that investors are not just buying US AI chip stocks. They buy into the broader global supply chain that makes these chips possible.
Strategy: TD Cowen remains bullish on Bitcoin treasury stocks
strategy It caught attention after TD Cowen raised its price target to $400 from $395 and maintained a buy rating. This means an increase of more than 140% from the previous close.
The strategy holds a large treasury of Bitcoin and uses leverage and capital appreciation to grow those holdings. The company’s software business still exists, but its market valuation is based almost entirely on its Bitcoin position.
High upside down, high risk
TD Cowen’s call signals confidence in the strategy’s approach to Bitcoin accumulation. But the stock is still one of the most volatile stocks on the market.
If Bitcoin declines, the strategy can decline sharply. If Bitcoin rises, the stock tends to attract momentum buyers quickly.
For investors who want greater exposure to Bitcoin through the stock market, the strategy remains one of the most watched names.
TARGET: Earnings beat, but investors remain cautious
goal It reported first-quarter adjusted earnings of $1.71 per share, beating estimates of $1.46. Revenues were $25.44 billion, above expectations of $24.66 billion.
Comparable sales improved, thanks to strong customer traffic. Target also raised its full-year sales growth forecast, a sign that its turnaround plan may be gaining momentum.
Mixed reaction for stocks despite the beat
Despite the rise in earnings, stock reaction was mixed. Investors remain cautious about consumer spending and whether Target’s improvement in the first quarter can continue through the rest of the year.
Margins and the broader retail environment remain a concern. One strong quarter is not enough to fully restore confidence after a difficult period for retailers.
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