Nvidia earnings set to guide US stock market as Trump boost fades

Nvidia’s earnings will take centre stage for the US stock market this week, while FTSE 100 firms Imperial Brands, Severn Trent and Halma report across the pond.

The chipmaking behemoth has seen its share price gain nearly 800 per cent over the last two years as booming demand for AI has driven it to become the world’s most valuable company by market value.

Nvidia, which will report third-quarter earnings on Thursday, has heavy influence over the S&P 500 and Nasdaq 100 and could provide a boost after both indexes fell from record highs achieved in the wake of Trump’s victory in the US election earlier this month.

The firm’s guidance suggests it will post around 80 per cent revenue growth to $32.5bn, while markets expect a figure closer to $33bn.

“If NVIDIA continues its strong run of beating market expectations, things could be better still,” said Derren Nathan, head of equity research at Hargreaves Lansdown.

“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.”

Investors will be paying close attention to sales of Nvidia’s recently-launched Blackwell chip. The company has faced questions over the ability of its supply chain to keep pace with the massive demand for chips that can perform complex AI tasks.

Imperial Brands

Tobacco giant Imperial Brands will report its full-year results on Tuesday as investors look for signs of resilience despite a growing number of anti-smoking measures in the UK.

Analysts expect the Winston and JPS cigarette maker to post an adjusted operating profit of £3.9bn for the year to September, aroudn four per cent higher than a year earlier.

Revenue from its tobacco and so-called next generation products (NGPs) – including vapes, heated tobacco and oral nicotine pouches – are expected to hit £8bn, nearly three per cent higher than the previous year.

Imperial Brands still makes the bulk of its sales from traditional cigarettes but has enjoyed rapid growth in NGPs as it rolls out new products and benefits from higher prices.

Smokers and vapers in the UK will pay more after Chancellor Rachel Reeves announced a new vaping tax and an increase in tobacco duty in her first Budget last month.

Severn Trent

Water utility Severn Trent will publish its results for the first half of its financial year on Wednesday.

Investors will be looking for any comments on Severn Trent’s preparations for regulator Ofwat’s AMP8 framework, which it is due to confirm on 19 December.

The five-year plan will set the level at which it can charge bills and require substantial infrastructure investment after intense backlash from consumers over the water sector’s performance on leaks, floods and sewage.

Analysts expect Severn Trent’s capital expenditure to peak at £1.4bn for the year to March 2025, up from £1.2bn a year earlier.

Although Ofwat’s annual company performance report in October ranked Severn Trent highly among the UK’s 16 large water providers, its share price has struggled to make gains this year as the sector comes under heavy scrutiny.

In October, ministers launched the largest review of the sector since it was privatised. Environment minister Steve Reed previously unveiled legislation to ramp up watchdogs’ powers to issue fines, conduct oversight and recoup costs.

“Besides the capital investment budget, the other big figure to watch in these first-half results will therefore be the dividend, not least as this could be seen as a guide to management’s confidence in the business and regulatory outlook,” said analysts at AJ Bell.

Halma

Safety products conglomerate Halma will release its half-year results on Thursday. Its previous results for the year to March showed the 21st consecutive year of growing revenue and profit.

“Trading details at the end of September show performance isn’t shooting the lights out,” said Matt Britzman, an analyst at Hargreaves Lansdown. “But that’s kind of what Halma does well – consistent delivery in the face of varied economic climates.

“All eyes will be open for any detail on the Healthcare businesses where budget constraints are keeping a lid on customer orders. Aside from that, it’s the usual acquisition pipeline commentary that’s worth watching for, given the strategy relies as much on acquisitions as it does organic growth.”