As the earnings season winds down, a number of big-name companies are still set to report their latest financial results in the coming week. Investors will be closely watching chipmaker Nvidia and retailer Walmart, among others, to gauge the state of the AI boom and consumer sentiment, respectively.

Unlocking the AI Potential: Nvidia's Quarterly Earnings in the Spotlight

Nvidia's AI Dominance and the Blackwell Chip Debut

Nvidia, the leading chipmaker, has become a bellwether for the global push in artificial intelligence (AI). The company's latest quarterly results are expected to draw significant market attention, as investors eagerly await insights into the continued demand for Nvidia's chips amid the AI boom. The recent rise in Nvidia's shares has even pushed the company to overtake Apple as the world's most valuable company, with a market capitalization of $3.6 trillion.Nvidia's CEO, Jensen Huang, has already made headlines by announcing that Japanese tech conglomerate SoftBank will be the first to receive the company's AI Blackwell chips. During a keynote speech at Nvidia's AI Summit in Japan, Huang revealed that SoftBank will be using the Blackwell platform to build Japan's most powerful AI supercomputer. Additionally, Nvidia disclosed that SoftBank, utilizing the company's AI Aerial computing platform, has piloted the world's first combined AI and 5G telecom network.

Expectations and Outlook for Nvidia's Q3 Results

Nvidia has guided to revenue of $32.5 billion, plus or minus 2%, for its third quarter of fiscal year 2025. However, market forecasts suggest the actual number could be slightly higher. If Nvidia continues its trend of beating market expectations, the results could be even better. Investors will be particularly focused on the outlook for the final three months of the year, where consensus is currently looking for revenue of $36.6 billion.In the previous quarter, Nvidia reported revenue of $30 billion, which was 122% higher than the same period a year earlier. The company also posted earnings per diluted share of $0.67, a 168% increase from the prior year. Analysts will be closely scrutinizing any updates on the performance of Nvidia's recently launched ultra-fast Blackwell chip, as the demand from tech giants like Meta, Microsoft, Google, and Amazon for an edge in the AI race remains strong. However, there are some concerns about Nvidia's supply chain's ability to keep pace with the growing demand.

Nvidia's AI Dominance and the Road Ahead

Nvidia's position as a leader in the AI revolution has been a key driver of its recent success. The company's chips have become essential for powering the AI-driven innovations of some of the world's largest tech companies. As the AI boom continues to accelerate, Nvidia's ability to meet the surging demand for its cutting-edge technology will be a crucial factor in determining its future growth and market dominance.

Walmart's Earnings: Insights into Consumer Sentiment

Alongside Nvidia, investors will also be closely watching the latest results from retail giant Walmart. As the world's largest retailer by sales, Walmart's performance can provide valuable insights into the state of US consumer sentiment, particularly as the country grapples with persistent price pressures.In its previous quarter, Walmart reported revenue growth of 4.8% to $169.34 billion, beating market expectations. The company's adjusted earnings per share of $0.67 also exceeded forecasts and marked a 9.8% increase year-over-year. This strong performance contributed to a 61% rise in Walmart's share price so far this year.

Walmart's Guidance and the Potential Impact of Trade Tariffs

For the third quarter, Walmart has guided to an increase of 3.25% to 4.25% in consolidated net sales, compared to the same period last year when it delivered $159.4 billion in net sales. The company also expects consolidated operating income to rise between 3% and 4.5%, up from $6.2 billion in the previous year's third quarter. Walmart has projected adjusted earnings per share to come in at $0.51 to $0.52, compared to $0.51 for the third quarter of the previous year.However, there are concerns that potential policies around trade tariffs from the incoming US administration could drive inflation higher, potentially impacting Walmart's performance. Investors will be closely monitoring any updates or commentary from the company on this front, as Walmart's results can provide valuable insights into the broader consumer landscape.

Imperial Brands: Navigating Regulatory Challenges in the Tobacco Sector

In the tobacco industry, investors will be keeping a close eye on the full-year results from Imperial Brands. Despite the higher duties on cigarettes and vapes announced in the recent UK autumn budget, the company's shares are currently trading at a five-year high, up 31% year-to-date.Imperial Brands' strong performance can be attributed, in part, to the five-year plan set out by CEO Stefan Bomhard, who took the reins in 2020. In its previous full-year results, the company reported a 7.1% decline in tobacco volumes (excluding Russia), but it was able to raise prices by an average of 11%. Additionally, sales in Imperial Brands' next-generation product segment rose by 26%.

Imperial Brands' Guidance and Dividend Outlook

For the year to September 2024, Imperial Brands has provided clear guidance, expecting to deliver revenue growth in the low-single digits on a constant currency basis for its tobacco and next-generation products segments. The company also forecasts that adjusted operating profit will grow by close to the middle of its mid-single-digit range.Based on this guidance, analysts are expecting the company to report group adjusted operating profit of £3.9 billion, which would be flat on the previous year. Analysts are also anticipating adjusted earnings per share of £2.95, up from £2.79 last year. In terms of its dividend, Imperial Brands has produced three consecutive increases in the payout, and analysts are looking for another advance to £1.53 per share in this set of results. The company has also recently announced a further share buyback of £1.25 billion, which it plans to complete by the end of October 2025.

JD Sports: Navigating Challenges and Seeking Growth Opportunities

Sportswear retailer JD Sports has had a tougher start to its fiscal year, but the situation has since improved for the business. Shares in the company are still down nearly 29% year-to-date, as the UK market remains challenging and volatile.In its interim results, JD Sports reported 5% growth in revenue to £5.03 billion, while profit before tax and adjusting items was up 2% to £405.6 million. The company's performance was boosted by double-digit sales growth in its European, North American, and Asia Pacific markets, but the UK market continues to be a source of concern.

JD Sports' Strategies and the Hibbett Acquisition

To offset the challenges in the UK market, JD Sports is tightening its belt and streamlining operations. Investors will be hoping that this means there won't be further downgrades to the company's full-year outlook in its upcoming results.Investors will also be keen to see how JD Sports' takeover of US sporting goods supplier Hibbett is progressing. The deal, completed in July, has substantially increased the group's footprint in the US, but there is still a lot of work to be done to ensure the benefits of the acquisition are fully realized.

The Impact of Tax Rises on JD Sports and the Retail Sector

Adding to the challenges facing JD Sports, the company's chair, Andy Higginson, who also chairs the British Retail Consortium, has warned that the tax rises on businesses announced in the UK's autumn budget will result in price increases for shoppers. The chancellor's decision to raise the national insurance rate for employers will likely lead to significant inflation in prices, according to Higginson.

The Takeover of Royal Mail-Owner IDS: Navigating Regulatory Changes

Investors in Royal Mail-owner International Distribution Services (IDS) will be closely following the progress of the company's £3.57 billion takeover led by Czech billionaire Daniel Kretinsky. The deal, agreed in May, will see IDS acquired through a special purpose vehicle owned by Kretinsky's J&T Capital Partners and EP Corporate Group.IDS has said that total parcels volumes were up 11% in its first quarter, while revenue across the group had risen 8% to £3.2 billion. However, the company's performance will be overshadowed by the ongoing regulatory changes in the UK postal service.

Regulatory Challenges and Opportunities for IDS

Regulator Ofcom is considering changes to the UK postal service for Royal Mail, including the potential scrapping of second-class letter deliveries on Saturdays. While a decision has not yet been made, Ofcom expects to consult on proposals for reform in early 2025, with a view to announcing a decision in the summer of that year.IDS has reportedly stated that the "change cannot come soon enough" to the UK postal service, suggesting the company is eager to adapt to the evolving regulatory landscape. Investors will be closely monitoring any updates on the progress of the takeover and the potential impact of the regulatory changes on IDS's operations and future prospects.