Nvidia CEO Jensen Huang Speaks At The Bipartisan Policy Center

Nvidia cofounder and CEO Jensen Huang speaks about the future of artificial intelligence and its effect on energy consumption and production (Chip Somodevilla/Getty Images)

First among AI-quals

Nvidia’s trouncing the competition like it’s about to deliver monster earnings

Outsized gains for Nvidia versus a broad index of chip stocks raises questions about how the stock will react to next month’s earnings report.

Luke Kawa

10/21/24 2:33PM

Nvidia, the chip designer powering the AI boom, has rocketed to new all-time highs in October with a 17% gain. In the process, it’s pulling away from its peers in a big way — the kind of thing that usually happens when the company is about to deliver a blowout set of quarterly numbers, or just did.

As of about 2:15 p.m. ET this afternoon, Nvidia is up more than double digits over the past 10 sessions, far outpacing the VanEck Semiconductor ETF’s advance. Last week, that two-week outperformance got to as much as 12.1%. That’s nearly the biggest gap between Nvidia and the semi crowd outside of the immediate run-up to or aftermath of an earnings release. The more positive outlier was the start of this year, when torrents of fresh money flowed into the AI bellwether.

The thing is… Nvidia’s earnings report isn’t just around the corner. It’s a month away (11/21).

A couple non-exhaustive, non-mutually exclusive theories on what’s going on here:

ASML’s latest quarterly report touched on some softness in chip demand ex-AI. The AI trade could be back to more of a winner-take-all mode, with Nvidia (rightfully) at its epicenter. A point in favor of this: every other time Nvidia’s gained at least 10% in a month since May 2023, the broader semiconductor group has done at least twice as well as it has this month. Earnings reports from the so-called hyperscalers (megacap tech firms investing heavily in AI) come well before Nvidia’s, which will allow for some more proof points for this thesis to be confirmed or rejected.
The bump Nvidia has gotten in the past from posting good earnings is getting pulled forward, and that’s raising the bar for how good the numbers actually have to be next to keep those gains going when the report actually lands. Some backing for this: out of the last six earnings reports, the two in which Nvidia did the best compared to semis heading into the announcement (8/23/2023 and 8/23/2024) saw a pretty lackluster relative performance thereafter.

Nia Warfield

36m

Six Flags pops after reiterating its guidance as theme park attendance rebounds

Six Flags shares rose more than 7% today after the company reported a rebound in attendance and early season-pass sales heading into the fall. The nine-week period ending August 31 saw 17.8 million guests, up about 2% from the same stretch in 2024, with stronger momentum in the final four weeks.

More importantly, Six Flags reaffirmed its full-year adjusted EBITDA guidance of $860 million to $910 million, showing confidence that its cost and operations strategy can stay strong for the duration of the year. Riding that wave, Six Flags also said early 2026 season pass unit sales are pacing ahead of last year, and average season pass prices are up around 3%.

The good vibes come despite a drop in in-park per capita spending, especially from admissions, where promotions and changes to attendance mix (which parks or days guests visit) have weighed. Earlier this week, the amusement giant extended a new agreement that extended its position as the exclusive amusement park partner for Peanuts™ in North America through 2030.

Despite the rally, Six Flags shares are down around 52% year-to-date.

Max Knoblauch

Rivian turns red on the year, squeezed by a recall and the looming end of the EV tax credit

Shares of EV maker Rivian are down more than 5% on Friday following the company’s recall of 24,214 vehicles due to a software issue. The stock move erases Rivian’s year-to-date gain and turns the company negative on the year.

Rivian’s 2025 model year R1S and R1T are affected by the defect, which was identified after a vehicle’s hands-free highway assist software failed to identify another vehicle on the road, causing a low-speed collision. Rivian said it’s released an over-the-air update to fix the issue.

The recall marks Rivian’s fifth this year, affecting nearly 70,000 of its vehicles.

Rivian’s shares are down more than 20% from their 2025 high, which came prior to the passage of President Trump’s “big, beautiful bill.” Through the legislation, the $7,500 EV tax credit is set to expire at the end of the month.

J. Edward Moreno

Moderna, Pfizer dip after WaPo reports Trump officials’ plan to link Covid vaccines to child deaths

Vaccine makers are falling after The Washington Post reported that the Trump administration plans to link the coronavirus vaccine to 25 child deaths.

Moderna and Pfizer, the two companies who sell the vaccine in the US, fell by more than 5% and 2%, respectively. The coronavirus vaccine is virtually the only revenue driver for Moderna, while Pfizer has a larger and more diverse portfolio.

Trump officials to link child deaths to covid shots, alarming career scientists

Hyunsoo Rim

DEVELOPING PROBLEMS

Concerns about rising government debt are not strictly an American problem

Global government debt piles are swelling to record levels. That’s an issue for many nations, but developing countries may be most at risk.

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Nia Warfield

RH slips after missing Q2 estimates and trimming its outlook amid cost pressure

Restoration Hardware shares dropped Friday morning after the luxury furniture brand missed Q2 estimates and tightened its full-year outlook.

Adjusted earnings per share came in at $2.93, below the Street’s estimate of $3.21. Revenue was $899.2 million, also missing analysts’ forecast of $905 million.

RH now expects full-year revenue growth of 9% to 11%, down from prior guidance of 10% to 13%, as margins get squeezed by tariffs and weakness in the housing market. Wall Street had been looking for about 10% growth this year.

The retailer is taking steps to blunt cost pressures, including shifting sourcing away from China. RH expects receipts to fall from 16% in Q1 to 2% in Q4, with vendors absorbing a meaningful portion of the tariff impact. RH is also boosting US manufacturing capacity in North Carolina and pushing back a new concept launch to next spring.

RH shares are down about 43% year to date.