Shares in Nvidia (NVDA) are trading near record highs ahead of the highly anticipated release of the chipmaker’s second-quarter earnings after the market close on Wednesday.
Nvidia is expected to report revenue of $46.2bn (£34.4bn) and adjusted earnings per share (EPS) of $1.01, according to Bloomberg analyst consensus estimates. The chipmaker reported revenue of $30bn and adjusted EPS of $0.68 in the same quarter last year.
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Josh Gilbert, market analyst at eToro, said: “In the current quarter, US mega caps have ramped up capital expenditure on AI following another round of strong results, and much of that investment is set to flow straight to Nvidia. That bodes well not only for this week’s earnings, but also for the company’s outlook in the quarters ahead.
“It’s in a highly enviable position as the go-to hardware manufacturer, and that’s not likely to change anytime soon,” he said. “Even with the stock trading at a premium valuation, investors continue to pay up on the expectation that Nvidia will keep delivering on AI growth.”
“Nvidia may be the market’s heartbeat, but that comes with the expectation of perfection, meaning even the smallest disappointment could spark outsized volatility across broader markets, not just Nvidia shares,” Gilbert added. “But investors will likely see weakness as an opportunity, given the AI boom feels like it’s only just getting started.”
Shares in Okta (OKTA) popped 5.6% in pre-market trading on Wednesday, after the identity security provider delivered an earnings beat.
In results released on Tuesday, Okta posted a 13% increase in revenue year-on-year to $728m, while diluted earnings per share rose to $0.37. Wall Street was expecting revenue of $711m and EPS of $0.21.
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For the third quarter, Okta guided to revenue of $728m to $730m, which would represent year-on-year growth 9% to 10%. The company also lifted its 2026 outlook to a range of $2.875bn to $2.885bn.
Todd McKinnon, CEO of Okta, said: “Our solid Q2 results are highlighted by continued strength in new product adoption, the public sector, Auth0, and cash flow. In the age of AI, Okta’s independence and neutrality will continue to give organisations the freedom to innovate securely and on their own terms.”
Shares in MongoDB (MDB) soared more than 31% in pre-market trading on Wednesday, after the database software provider reported strong quarterly results on Tuesday.
MongoDB reported a 24% rise in revenue year-to-year to $591.4m for the second quarter but also posted a loss per share of $0.58. However, both figures bested Wall Street estimates of $553m and a loss of $0.85 per share for the quarter, according to S&P Global Market Intelligence.
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Dev Ittycheria, CEO of MongoDB, said: “MongoDB delivered strong second-quarter results across the board, highlighted by Atlas revenue growth accelerating to 29% and adding over 5,000 customers year-to-date, the highest ever in the first half of the year.”
“Many of our recently added customers are building AI applications, underscoring how our value proposition is resonating in the AI era and why MongoDB is emerging as a key component of the AI infrastructure stack,” he said.
For the third quarter, the company guided to revenue of $587m to $592m and $2.34bn to $2.36bn for the full year.
Shares in Cracker Barrel (CBRL) were up 6.6% in pre-market trading on Wednesday after the US restaurant chain ditched a redesign of its logo following backlash.
In a post on X late on Tuesday, Cracker Barrel said: “We thank our guests for sharing your voices and love for Cracker Barrel. We said we would listen, and we have. Our new logo is going away and our “Old Timer” will remain.”
Cracker Barrel faced criticism after recently revealing a new logo – including from president Donald Trump – which removed its “Uncle Herschel” figure from the design.
After the company announced its decision to scrap the new logo, Trump said in a social media post on Tuesday: “Congratulations ‘Cracker Barrel’ on changing your logo back to what it was. All of your fans very much appreciate it. Good luck into the future. Make lots of money and, most importantly, make your customers happy again!”
On the London market, shares in Rio Tinto (RIO.L) ticked 1% higher on Wednesday morning after the miner announced changes to its business structure
Rio Tinto said that effective immediately it was simplifying its product group structure into three businesses: iron ore, aluminium and lithium, and copper.
In addition, Rio Tinto said it had appointed Matthew Holcz as CEO of its iron ore business.
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Simon Trott, CEO of Rio Tinto, said: “A simplified business structure, grounded in our fundamental commitment to safety and with sharper focus on the most compelling opportunities we have, will enable us to deliver new standards of operational excellence and value creation. It will bring greater accountability and focus to our teams, underpinned by a more disciplined approach to operational performance and capital investment.
“We have delivered resilient results this year, remain on track to deliver strong mid-term production growth, and continue to make progress against our objectives. Our focus now is on unlocking further shareholder value, putting both our capital and talent where it will deliver the greatest returns.”
Retailer JD Sports (JD.L) was the biggest riser on the FTSE 100 (^FTSE) on Wednesday morning, with shares climbing 3% on the back of its second quarter trading statement.
The sportswear retailer reported 2.2% growth in sales on an organic basis for the second quarter and said it expected full-year profit before tax and adjusting items to be in line with current market expectations.
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Aarin Chiekrie, equity analyst at Hargreaves Lansdown, said: “JD Sports investors breathed a sigh of relief as second-quarter numbers landed in line with market expectations, with group like-for-like sales down 3.0%. This was helped by America delivering a better-than-expected performance, despite the ongoing tariff-related uncertainty. Europe and especially the UK remain a drag on performance though, with like-for-like sales at the latter down 6.1%. This was driven by a tough comparative period, where last year’s sales were given a foot up due to the men’s 2024 Euro’s.
“Looking further out, the shift in focus from expansion to squeezing the most out of its existing store footprint is a welcome one. This should help to strengthen the balance sheet and provide more wiggle room for shareholder payouts – including a new £100m ($134m) share buyback announced today.”
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