Breakfast News: NVDA Earnings To Take Center Stage

Breakfast News: NVDA Earnings To Take Center Stage

May 18, 2026

| Friday's Markets | | --- | | S&P 500 7,409 (-1.24%) | | Nasdaq 26,225 (-1.54%) | | Dow 49,526 (-1.07%) | | Bitcoin $79,059 (-2.71%) |

Source: Image created by Jester AI.

1. Nvidia To Close Out Mag 7 Earnings

Eyes turn toward first-quarter earnings from Nvidia (NVDA +1.22%), due Wednesday, after the chip maker – beating the S&P 500 by 95% since 2024's recommendation in Hidden Gems – saw its market cap briefly edge above $5.7 trillion last week. With the company seen as a bellwether for the whole AI business, analysts expect around 80% revenue growth year over year (YoY).

• Nvidia makes up 9% of S&P 500 valuation: Ben Snider at Goldman Sachs (GS +5.74%) last week noted the S&P 500's 10% rise so far this year is heavily led by AI stocks, with Nvidia contributing 20% of the index's total 2026 returns to date. Nvidia – also recommended by Team Rule Breakers – fell 4.4% Friday as markets cooled.
• S&P 500 up 7 weeks in a row: Friday's dips left the S&P 500 in positive territory – but only just, with a 0.1% gain – while the Nasdaq slipped back 0.1%. S&P 500 futures dropped 0.3% in early trading, while Nasdaq futures remained steady, as Middle East tensions continue.

2. Retail Earnings in View

• TJX (TJX +5.66%) – recommended in Stock Advisor by Team Hidden Gems – will post first-quarter results Wednesday. Last month, Fool contributing analyst Jason Hall described TJX as "one of the three best retailers I can think of** ...** incredible at knowing its business, knowing its customers, knowing what it does better than anyone." Analysts predict a 6% YoY revenue rise.
• Walmart (WMT 2.53%), often seen as a barometer for consumer spending, reports Q1 Thursday. Wall Street is expecting another strong quarter, following a 12% EPS rise in the final quarter of fiscal 2026. Management previously guided for 6% to 8% operating income growth for fiscal 2027.
• Home Depot (HD +2.73%) leads both of these with a Q1 update Tuesday morning. After the Dividend Investor Foundational Stock saw net sales contract 3.8% YoY in its fourth quarter, investors should watch comparable sales performance as a weak housing market adds pressure. Margins are a bit squeezed too.

3. What Else to Watch This Week

• Baidu (BIDU 1.69%) posted a 49% YoY rise in Baidu Core AI-powered Business in Q1 this morning – to exceed 50% of Baidu General Business for the first time – and called it "a clear signal that AI has become the core driver." It follows pressure on profits in Q4 as the company transitions from traditional advertising. The stock gained 2% in early trading as a result.
• Take-Two Interactive Software (TTWO 0.64%) – recommended by Team Rule Breakers – closes its fiscal year with a Q4 update Thursday, following a 25% rise in Q3 revenue. Speculation over the impending launch of Grand Theft Auto VI is growing after leaks and rumors suggest a possible event today.
• e.l.f. Beauty (ELF 4.40%) reports its final quarter of fiscal 2026 Wednesday. The inflationary squeeze has hit the stock price, though the company – recommended by both Team Hidden Gems and Team Rule Breakers – saw sales jump 38% in Q3, as management raised full-year guidance. Forecasts suggest a revenue rise of 28% YoY.

4. Berkshire Hathaway's Portfolio Shakeup

Berkshire Hathaway (BRKB +0.09%) revealed significant changes to its stock portfolio on Friday, marking the first full quarter under new CEO Greg Abel. According to a regulatory filing, the conglomerate acquired a $2.6 billion stake in Delta Air Lines (DAL +9.39%), returning to a stock it previously exited in 2020. Berkshire also added a $55 million stake in Macy's (M +4.99%) and bought nearly 40 million additional shares of Alphabet (GOOG +0.00%).

• Chevron (CVX 2.99%)** stake cut by $2.4 billion:** Abel also reduced Berkshire's Bank of America (BAC +1.04%) holding by $3.4 billion. And he exited UnitedHealth (UNH 1.53%) – which subsequently fell around 4% in pre-market trading – along with Amazon (AMZN +2.14%), Domino's Pizza (DPZ +1.03%), Mastercard (MA 0.33%), and Visa (V +0.26%), which were all relatively small holdings.
• Maintaining a concentrated approach to investing: Abel, who took over in January, noted at Berkshire's recent annual meeting that he and Warren Buffett still collaborate on stock purchases – and he left Berkshire's big stake in Apple (AAPL +1.02%) unchanged.

5. Your Take

Year to date, would you say you've: Bought more stock than you've sold; Sold more stock than you've bought; Roughly an even split; or Mostly sat on your hands?

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