Nvidia, Salesforce, HP, Tesla and M&S

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NVIDIA (NVDA) stock jumped nearly 5% in pre-market trading after chipmakers released another blowout quarter, although it limited the way it operates in China.

The company’s revenue was $44.06 billion (£32.71 billion) for the quarter, surpassing Wall Street’s forecast of $43.34 billion. Growth was once again driven by its data center division, which grew 73% year-on-year. This figure is slightly predicted by analysts.

Adjusted net income climbed to $198.9 billion, up 31% from $15.24 billion a year ago. The results include a $4.5 billion charge associated with chips developed for the Chinese market, which NVIDIA can no longer sell due to tightening U.S. export controls.

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In the quarter, NVIDIA expects revenue of $45 billion, plus 2%, slightly below analysts’ expectations of $45.92 billion. The company said the guidance reflects estimated $8 billion in sales lost, due to restrictions on Chinese freight.

NVIDIA CEO Jensen Huang said in an interview last week that the company has lost $15 billion in sales due to these rules.

“The $50 billion Chinese market effectively shut down the U.S. industry,” Huang said. “The H20 export ban ends our Hopper data center business in China. We cannot further reduce the hopper.”

“We are exploring limited ways to compete, but Hopper is no longer an option,” Huang continued. “China’s artificial intelligence continues to move forward with or without American chips.”

“In a quarter of uncertainty, NVIDIA reminds the market why it is the cornerstone of the AI revolution and has another reliable result and optimistic forecast,” said Josh Gilbert, a market analyst at investment platform Etoro.

“Investors enter the quarter, looking for signs that NVIDIA can alleviate short-term concerns. The clear information they have received indicates that demand is still strong and Blackwell is accelerating rapidly, and these results will restore investor confidence.

“Despite China’s drag, NVIDIA’s top-notch power endorsed a $44 billion sales, while another $45 billion projection is expected to be in the next quarter telling us they are making up for China’s losses elsewhere.”

Salesforce (CRM) stock (CRM) was higher before the U.S. Open Bell as sales and customer service software manufacturers reported optimistic fiscal first-quarter results and guidance.

Revenues ended in the first quarter of fiscal, which ended on April 30, rose 7.6% year-on-year, the company said in a statement. Net income was $1.54 billion, or $1.59 per share, basically flat, compared with $1.53 billion in the same period last year, or $1.56 per share.

In the quarter, Salesforce expects adjusted earnings per share to be $2.76 to $2.78, with revenue of $1.01 billion to $10.16 billion, ahead of analysts’ expectations. LSEG consensus predicts adjusted revenue per share of $2.73, with revenue of $101.1 billion.

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The company also offered full-year guidance. Adjusted revenue is now expected to be between $11.27 and $11.33 per share, with revenue between $41 billion and $41.3 billion, meaning an increase of 8% to 9%. Analysts have been making $40.82 billion in revenue of $11.16 per share. In February, Salesforce predicted adjusted revenues of $11.09 to $11.17, with revenues of $40.5 billion to $40.9 billion.

Salesforce reiterates its prospect of a 9% increase in subscription and support revenue, its agent offerings.

“It’s all going well this quarter,” Salesforce co-founder and CEO Marc Benioff told Yahoo Finance. “We have good bookings, revenues are going well and currency is going well.”

HPQ shares fell 15% in pre-written trading, and at the time of writing, the company’s shares fell about 7% after the company reported weaker expectations in the second quarter, citing the impact of increased tariff costs, which increased margins.

Revenue for the quarter rose 3.3% year-on-year to $132.2 billion, slightly higher than analysts’ expectations of $131.4 billion. However, net profit fell 17% to $700 million compared to the same period last year, lacking Wall Street’s forecast.

“Our non-GAAP operating profit was not expected due to additional tariff charges that could not be completely mitigated in the quarter,” HP CEO Enrique Lores said on the company’s earnings call.

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Despite efforts to reduce its exposure to China by shifting production elsewhere, the company’s prospects and profit margins have disappointed investors.

“We have recently increased production from Vietnam, Thailand, India, Mexico and the United States,” Lores said. “By the end of June, we now expect almost all of the products we sell in North America to be built outside of China.”

HP has been working to diversify its supply chain in response to escalating trade tensions and tariffs on Chinese imports, but the short-term financial impact of the transition is still affecting the results.

Tesla shares rose in pre-sales deals Thursday after CEO Elon Musk officially confirmed that he was resigning from the Trump administration and ended the helm of the government reform initiative.

In an article on his social media platform X, the world’s wealthiest people thanked Trump for the opportunity to help manage the Department of Administration’s Efficiency (Doge).

The White House began to deviate from Musk late Wednesday. His role is always temporary, but the timing of his departure – the day after he was publicly criticized Trump’s key policies, he caught the attention.

He told CBS News that he was “disappointed” by the president’s support for the domestic policy bill, which the House passed last week.

“Frankly, I’m disappointed to see the huge spending bill, which increased the budget deficit, not just reduced the budget deficit and undermined the work done by the Governor’s team,” he said.

Stocks for UK retailers are lower, even though the report shows that stock sales grew in 12 weeks to May 17 despite continued damage from cyber attacks that affected the entire business.

According to industry data released by Nielseniq, M&S food sales rose 10.8% year-on-year during this period. The retailer also increased its share of the UK grocery market by 20 basis points to 3.8%.

The growth rate marks a slowdown in Nielseniq’s 14.7% growth rate reported in the previous 12-week update, reflecting the impact of cyber events that forced M&S (MKS.L) to keep several systems offline.

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As part of the response to the attack, the company stopped online clothing orders and experienced reduced availability of the food business, resulting in higher waste and increased logistics costs.

Last week, M&S warned that the incident would result in about £300 million in operating profit, while online services could last until at least July.

Nielseniq’s figures are widely consistent with data published a day ago by rival researcher Kantar, who also highlighted strong sales performance from Aldi and Lidl, as well as the continued momentum of Tesco (TSCO.L), Sainsbury’s (SBRY.L) and online Grocer Ocado (Ocdo ocdo.l).

Other companies in the news Thursday, May 29:

Auto Trader (auto.l)

Helios Underwriting (HUW.L)

Braemar (BMS.L)

Hollywood Bowl (Bowl)

Dell Technology (Dell)

Catch (catch)

Ulta Beauty (Ulta)

GAP INC (GAP)

Bathroom and Body Engineering (BBWI)

Lid locker (FL)

Kohls Corp (KSS)