Senior Advisor to the U.S. President Elon Musk (L) and Nvidia CEO Jensen Huang (C) are directed to greet the Saudi Crown Prince at the Royal Court in Riyadh on May 13, 2025.
Brendan Smialowski | Afp | Getty Images
My top 10 things to watch Wednesday, May 28
1. The S&P 500 was headed for a flat open after snapping a four-session losing streak with an over 2% gain. Wall Street jumped after President Donald Trump delayed his EU tariffs. Tonight, it’s all about Big Tech earnings, which might explain the muted trading action this morning.
2. Nvidia earnings are tonight. Big deal for Wall Street as usual. Key questions: What is the data center growth rate? What’s happening with China restrictions and a new chip for that market? How lucrative will new “sovereign AI” customers like Saudi Arabia be? Also, where do next-gen bets like robotics and its 3D Omniverse platform stand?
3. Melius Research raised its price target on Broadcom to $283 a share from $198 and kept its buy rating. The analysts pointed to lots of artificial intelligence chip customers. They see an acceleration. Broadcom is a big Club name. We booked some profits yesterday out of discipline after its comeback rally since early April.
4. Redburn Atlantic analysts started coverage of Marvell Technology, a rival of Broadcom in custom AI chips, with a neutral rating and a price target of $67 a share. The analysts raised questions about Marvell’s future role in designing Trainium chips for Amazon Web Services.
5. Canaccord cut its price target on Club name Salesforce to $350 a share from $400 following the company’s deal to buy Informatica for $8 billion. Analysts kept their buy rating. Salesforce said Informatica will improve earnings, cash flow, and Agentforce. I’m talking to CEO Marc Benioff tonight on “Mad Money” after Salesforce’s earnings.
6. Okta shares are tumbling around 12% this morning after the identity security provider last night issued what appeared to be conservative guidance. Lots of price target adjustments from analysts, including UBS, which went to $130 a share from $150.
7. Retail earnings: Macy’s delivered a quarterly beat but a guidance cut. The stock rose 4%. Abercrombie & Fitch shares soared 25%, also after a beat and outlook cut. Dick’s maintained full-year guidance after a quarterly revenue beat. Shares of company gained nearly 6%. All three companies are concerned about tariffs.
8. Club name Honeywell is adding Marc Steinberg from Elliott Management to its board of directors, a hugely positive decision. Activist firm Elliott spurred Honeywell to break itself up into three separate companies, which I had also been pushing for. No turning back now.
9. Elon Musk broke ranks over President Donald Trump’s “Big Beautiful Bill,” saying the package of tax cuts and spending priorities undermines the work of the Department of Government Efficiency advisory board. Musk pulled back from DOGE to concentrate on running his companies X, Tesla, and SpaceX.
10. Musk’s SpaceX suffered another setback as its Super Heavy booster and Starship rocket exploded during a test flight yesterday. It was the ninth test flight with an un-manned crew, and the third explosion. Musk said there was progress made in yesterday’s test. “So big improvement over last flight,” he wrote on X.
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