Nvidia, AMD, HP, Diageo and Aston Martin

Shares in Nvidia edged slightly higher in pre-market trading on Wednesday as the chipmaker prepared to report quarterly earnings after the closing bell, in a release that investors expect could have a sizeable impact on broader markets.

The company said it expects revenue of $65bn, plus or minus 2%. GAAP gross margins (Generally Accepted Accounting Principles) are forecast at 74.8% plus or minus 0.5%, while GAAP operating expenses are expected to be approximately $6.7bn.

Analysts at Morgan Stanley, led by Joseph Moore, said they expect strong fourth quarter results from Nvidia (NVDA) and expressed very high confidence that the company will perform well for the full year.

Traders are bracing for a sharp move in the shares following the earnings report. Options pricing suggests that Nvidia (NVDA) stock could move as much as 6% in either direction by the end of the week. A swing of that magnitude from Monday’s close would take the shares back up to about $203.5, a level not seen since November, or push them down to $180.5.

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Sentiment among Wall Street analysts remains overwhelmingly positive. Of the 13 analysts with current ratings compiled by Visible Alpha, 12 recommend buying the stock and one has a neutral rating. Their average price target of roughly $253 stands about a third above Monday’s close.

Shares in AMD were the top trending ticker on Yahoo Finance in pre-market trading after the US chipmaker agreed a multibillion dollar deal with Meta (META) that could result in the Facebook owner taking a 10% stake in the group.

The social media company said it would acquire customised chips with a total capacity of 6 gigawatts from AMD (AMD) as it accelerates efforts to develop and deploy its AI models. AMD chief executive Lisa Su said that “each gigawatt of compute is worth double-digit billions” under the deal.

As part of the agreement, AMD (AMD)has issued Meta (META) with a performance based warrant, giving it the option to acquire up to 160 million AMD shares in tranches at an exercise price of $0.01, as the Facebook owner places successive processor orders.

Tom Essaye, founder of Sevens Report Research, told Yahoo Finance the deal was “a shot across the bow” for Nvidia (NVDA), as chipmakers compete aggressively for a limited pool of hyperscaler customers building out AI data centres. Nvidia CEO Jensen Huang and AMD CEO Lisa Su are cousins.

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The agreement is the latest example of the circular dealmaking that has become a hallmark of the AI boom. In recent years, Nvidia (NVDA) has invested billions of dollars in several customers, including ChatGPT parent OpenAI, Elon Musk’s xAI and data centre developer CoreWeave (CRWV), which in turn spend heavily on the company’s chips.

At the same time, Microsoft (MSFT), Google (GOOG) and Amazon (AMZN), all major buyers of Nvidia’s processors for their data centres, have invested billions of dollars in OpenAI and Anthropic, companies that depend on the technology groups for computing power.

Shares in HP were making a tentative comeback in pre-market trading after falling more than 1% in the previous session, as the company lowered expectations for its fiscal year despite reporting quarterly results that beat forecasts.

The computer and printer maker said on Tuesday that full year results were now expected to come in at the lower end of its previous guidance range, citing rising memory chip costs and what it described as an increasingly fluid operating environment.

HP (HP) had previously forecast adjusted earnings per share of $2.90 to $3.20 for the fiscal year. Analysts polled by FactSet were expecting $2.99 a share.

For the current quarter, the company said it expects adjusted earnings per share of 70 cents to 76 cents, compared with analyst projections of 74 cents.

In the fiscal first quarter, HP (HP) reported net profit of $545m, or 58 cents a share, down from $565m, or 59 cents a share, a year earlier. Adjusted earnings per share were 81 cents, ahead of analyst estimates of 77 cents.

Revenue rose 6.9% to $14.44bn, surpassing analyst expectations of $13.94bn.

Personal systems revenue increased 11% to $10.25bn, offsetting a 2% decline in printing sales to $4.19bn.

In London, Guinness and Johnnie Walker owner Diageo has cut its outlook again and slashed its dividend as new chief executive Dave Lewis said the group needed to “act more decisively” to revive performance.

Lewis, the former Tesco (TSCO.L) boss who took up the role at the start of the year, warned there was “significant work ahead” as the drinks group reported a 2.8% fall in underlying operating profit to $3.26bn for the six months to 31 December. Underlying sales also declined 2.8%.

The company downgraded its full year guidance for the second time in three months. Sales are now expected to fall by 2% to 3%, reflecting continued weakness in the US, while earnings are forecast to be flat to up by a low single digit percentage.

Diageo (DGE.L) said it was accelerating cost savings and now expects about 50% of its planned reductions to fall in the current financial year.

In a blow to investors, the group said it would more than halve its interim dividend in order to strengthen its balance sheet.

Lewis is preparing an updated strategy to be unveiled later in the summer.

He said: “Only several weeks in I can already see significant opportunities for Diageo to act more decisively to enhance its competitiveness and broaden the portfolio offering leading to higher growth.

“To deliver on these opportunities, we need to create more financial flexibility.

“Accordingly, the board has taken the difficult decision to reduce the dividend to a more appropriate level which will accelerate the strengthening of our balance sheet.

“We are confident that this is the right action which will ensure that Diageo can reinforce its position as the leading international spirits business and drive stronger shareholder value over the coming years.”

Aston Martin Lagonda said on Wednesday that it planned further job cuts after reporting a sharp widening of losses, as weak demand and the impact of tariffs weighed on performance.

For the year to the end of December 2025, operating losses widened to £259.2m from £99.5m. Underlying operating losses increased to £189m from £83m, while the pre tax loss widened to £363.9m from £289.1m.

Revenue fell 21% to £1.3bn and total wholesale volumes declined 10% to 5,448 vehicles. Net debt rose to £1.4bn from £1.2bn a year earlier.

The company had warned last week that annual losses would be worse than expected, partly as a result of US tariffs.

Chief executive Adrian Hallmark said: “In 2025, we navigated a highly challenging trading environment whilst delivering on critical operational milestones. An unprecedented backdrop of geopolitical uncertainties and macroeconomic pressures, including heightened tariffs in the US and China, weighed on our performance and ability to execute our plans effectively.”

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The carmaker said it would cut up to 20% of its workforce following an earlier round of organisational changes at the start of 2025.

“Having undertaken, at the start of 2025, a process to make organisational adjustments to ensure the business was appropriately resourced for its future plans, we had to take the difficult decision at the end of 2025 to implement further changes,” the company said. “This latest programme will ultimately see the departure of up to 20% of our valued workforce.”

Mark Crouch, market analyst for eToro, said: “This update feels less like a grand tour and more like another pit stop for Aston Martin (AML.L). Yes, the second half was stronger, and Valhalla deliveries boosted the fourth quarter. However, the full-year picture is hard to ignore, with revenues down 21%, and margins compressed, the losses are deepening for the luxury car maker.”

“For one of the most evocative badges in motoring, branding alone can’t refinance £1.38bn of net debt. Leverage at these levels leaves little room for error, especially with tariffs biting and luxury car demand patchy at best. Cutting 20% of the workforce may steady costs for Aston, but it also underlines the pressure under the bonnet.”

“At some stage the market stops admiring the paintwork and starts inspecting the engine. Management is pinning its hopes on the latest model cycle, DBX S, Vantage S, the Vanquish V12 and, of course, Valhalla to restore margins and momentum. But Aston has often relied on the next launch to change its fortunes. At some point, the market may wonder whether the problem isn’t the cars, but the economics of building them.”

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