All eyes on Nvidia, US retail continues its divergent fortunes as TJX impresses and Target misses and MicroStrategy soars as it prepares to go on bitcoin shopping spree

“A 2%-plus decline in Nvidia’s share price ahead of its latest results doesn’t set a celebratory tone. It implies investors are slightly nervous about the forthcoming figures,” says Dan Coatsworth, Investment Analyst at AJ Bell.

“Demand for Nvidia’s products and services is unlikely to be a problem, it’s more about the fine detail on the new Blackwell chip and any commentary on boosting supplies in 2025.

“Blackwell is the all-singing, all-dancing product from Nvidia that’s set to give customers more sophisticated processing power. Over the summer there were reports of design flaws with Blackwell chips. Now there is speculation around Blackwell AI servers overheating.

“It’s given investors a mild dose of indigestion and they’ll be keeping their fingers crossed that Nvidia can shrug off any issues as minor teething problems.

“As it stands, Nvidia is forecast to report $0.746 earnings per share on $33.09 billion of revenue. But beating those figures may not be enough to put the share price back on an upwards path. Nvidia will also need to reassure on Blackwell and outline the reasons why the AI super-craze will stay intact for 2025, 2026 and beyond.”

US Retail: Target and TJX

“There is a clear division of fortunes for US retailers. Discounters are having to work hard to stand still while those serving middle-class consumers are holding up nicely. The pattern was established before the latest earnings season and so far, the trend remains intact.

“Target’s results went down like a lead balloon. The discount department store operator has suffered from cost-conscious shoppers going the extra mile to find the best deals. Money is tight for a lot of people and they want every dollar to go a long way.

“Target has been slashing prices and pushing more own-label products, but it just isn’t enough to compete with the behemoth that is Walmart. Ironically, Walmart’s core growth is coming from more affluent customers, yet it is still proving popular with lower-income shoppers.

“Target is now looking for some holiday cheer as it moves into top gear for the festive season. Suffice to say, investors’ already-low expectations have just got worse thanks to downgraded guidance from the company.

“TJX operates everyone’s favourite jumble store, TJ Maxx (known as TK Maxx in Europe and Australia). The shopping experience might be chaotic but there is a certain charm about discovering what’s on its rails. Shoppers love a bargain and they’re also up for the challenge to hunt through stores, creating the right kind of environment for TJX to thrive. Its latest results beat expectations as its off-price stores act as a magnet for bargain hunters.”

MicroStrategy

“If Donald Trump’s election victory sounded the ‘buy’ siren for bitcoin and sent the cryptocurrency soaring, another event has now caused all kinds of excitement in the crypto world.

“US-listed business intelligence group MicroStrategy has been one of the most popular ways for individuals to play the bitcoin price, particularly among UK investors looking for ways to get exposure through their ISAs and pensions where direct ownership of bitcoin is not permitted in these account types.

“MicroStrategy held 279,420 bitcoin as of 11 November, worth $26.38 billion at the current price of $94,422, making its share price highly levered to action in the crypto market. The stock enjoyed another big leg up after upgrading its fundraising plans from $1.75 billion to $2.6 billion, with the proceeds earmarked to buy more bitcoin.

“This has sent a big signal to the market that MicroStrategy is bullish on the cryptocurrency and investors have raced to load up ahead of the company’s buying spree. Bitcoin hit an intraday high of $94,594, putting it ever closer to the much-hyped $100,000 level.”

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