Stock futures indicate a flat start for Wall Street on Wednesday, following the S&P 500’s third-consecutive winning session and its best performance since June.
Tesla’s AI Computing Cluster Sparks Interest
Tesla (TSLA) experienced a slight dip of 1.5% in premarket trading after closing with a substantial gain of 7.7% on Tuesday, reaching $257.18 per share. This marked Tesla’s highest price in nearly three weeks and its largest one-day percentage increase since March 21. The electric-vehicle giant is set to launch a groundbreaking $300 million AI computing cluster, as reported by Oppenheimer analyst Rick Schafer. According to Schafer, this supercomputer will feature an astonishing 10,000 Nvidia H100 GPUs and will surpass the capabilities of the world’s third highest-performing supercomputer.
VinFast Auto Recovers After Market Volatility
VinFast Auto (VFS) shows promising signs as it rises by 7% in premarket trading. The Vietnamese electric-vehicle start-up experienced a setback on Tuesday, breaking its six-day winning streak with a sharp decline of 44% and approximately $90 billion wiped off its market value.
HP Inc. Faces Challenges in the PC Market
HP Inc. (HPQ) encounters a significant drop of 9% in premarket trading as it revises its outlook for fiscal 2023. Chief Executive Enrique Lores shared in an interview that “PC prices are not improving as quickly as we expected,” and identified factors such as a slowdown in corporate hiring that have led to decreased enterprise PC demand. As a result, HP now anticipates a lower fiscal-year adjusted profit range of $3.23 to $3.35 per share, compared to the previous range of $3.30 to $3.50.
Hewlett Packard Enterprise Beats Expectations
On a positive note, Hewlett Packard Enterprise (HPE) reports better-than-expected fiscal third-quarter adjusted earnings, attributing its success to strong growth in the networking business and the rising demand for high-performance computing and generative artificial intelligence hardware and services. Despite this, the stock experiences a minor decline of 0.2%.
Nvidia Closes at Record High, but Declines in Premarket Trading
Nvidia (NVDA) experienced a minor setback, with a 0.4% decrease in premarket trading, after reaching a new milestone for its stock. Closing at a record high of $487.84, the graphics chip maker saw a notable 4.2% increase. During the trading session, it even achieved an intraday all-time high of $490.81, demonstrating its continued growth in the market. Additionally, Nvidia’s market capitalization exceeded $1.2 trillion for the very first time on Tuesday, as reported by Dow Jones Market data.
Ambarella Faces Steep Decline Ahead of Third-Quarter Revenue Release
Amidst market trends, Ambarella (AMBA) witnessed a significant drop of 19% in premarket trading due to its underwhelming third-quarter revenue forecast. Unfortunately, the chip maker’s projection fell short of analysts’ expectations. Ambarella anticipates generating approximately $50 million in revenue, plus or minus 4%, which is notably lower than the predicted $67.9 million.
Box Shares Tumble Due to Weak Fiscal-Year Revenue Guidance
Box (BOX), a cloud-based content-storage company, experienced a noticeable decline of 7.4% in premarket trading as a result of lower-than-expected fiscal-year revenue guidance. The company announced its projected revenue range of $1.04 billion to $1.044 billion, which falls below Wall Street estimates of $1.05 billion. Despite reporting a 6% increase in fiscal second-quarter adjusted earnings at 36 cents per share and revenue reaching $261.4 million, analysts had anticipated slightly higher profits at 35 cents per share and $261 million in revenue.
Coinbase Retreats in Premarket Trading Following Appeals Court Ruling
Although Coinbase (COIN) enjoyed a surge of 15% in the previous trading session, it encountered a marginal decline of 0.9% in premarket trading. This shift occurred after an appeals court ruling that stated the Securities and Exchange Commission had wrongly rejected Grayscale Investments’ application for a spot Bitcoin ETF.
Earnings Reports Awaited for Prominent Companies
Investors eagerly anticipate the closing bell on Wednesday as notable earnings reports loom for various companies. Salesforce (CRM), CrowdStrike (CRWD), Chewy (CHWY), and Okta (OKTA) are among the key players set to release their financial results.
