Tech stocks today: Investors gear up for Nvidia earnings, OpenAI v. Elon Musk trial decision
Quick Take
Investors await Nvidia earnings while the OpenAI vs. Elon Musk trial decision looms.
Key Points
- Nvidia's earnings report is highly anticipated.
- OpenAI and Elon Musk trial decision is pending.
- Tech stocks are reacting to these developments.
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Tech stocks were looking to bounce back from a slump at the end of last week.
One of the biggest events investors are looking forward to this week is the quarterly earnings report from the AI behemoth and $5 trillion+ company Nvidia (NVDA).
Nvidia’s results come out on Wednesday, after CEO Jensen Huang traveled to China with President Trump. Investors were hoping Chinese President Xi Jinping would allow Nvidia to import more chips to the country, but Trump told reporters Friday that China is instead focusing on developing its own AI processors.
Investors are also watching Nvidia competitor Cerebras (CBRS), after its stock soared 68% in its public debut last Thursday, sending a strong signal as the first of many AI company initial public offerings this year.
And jurors in Musk’s lawsuit versus OpenAI (OPAI.PVT) will begin deliberations Monday after lawyers for both sides give their closing arguments Thursday.
Musk’s lawsuit against one of the world’s most valuable private companies has provided a number of details about the inner workings of OpenAI and the relationships between Musk, Altman, president Greg Brockman, former chief technology officer Mira Murati, and former board member and mother of four of Musk’s children, Shivon Zilis.
LIVE 1 update
Nvidia to report Q1 earnings as chip competition grows
AI heavyweight Nvidia (NVDA) will report its first quarter results on May 20, in what is easily one of the most anticipated announcements of the earnings season.
Yahoo Finance’s Daniel Howley previews what to expect:
In addition to its China woes, Nvidia is contending with increasing competition in the AI chip space. Chip company Cerebras (CBRS) held its initial public offering on Thursday, with shares climbing 68%.
Cerebras sells a different form of AI processor than Nvidia, which the company says offers faster overall performance speeds.
Nvidia is also facing ever-increasing competition from AMD (AMD), which will launch a competing rack-scale server system later this year, as well as from customers, including Amazon (AMZN) and Google (GOOG, GOOGL), which are offering their AI chips to third-party customers.
In its latest earnings report, Amazon announced that its chip business now has an annual revenue run rate of more than $20 billion and is growing at triple-digit percentages year over year.
— Originally published at finance.yahoo.com
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