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  • 💥 Nvidia Smashes Earnings...Again

💥 Nvidia Smashes Earnings...Again

+ US Court Of International Trade Blocks Trump’s Sweeping Tariffs

May 28, 2025

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Good afternoon! Elon Musk’s SpaceX pulled off a bittersweet win last night: Starship hit orbital velocity for the first time before losing control and disintegrating over the Indian Ocean. Still, Musk isn’t slowing down — he’s promised to go “full-time” on his companies again, vowing to accelerate the Starship launch schedule to every few weeks as SpaceX races toward its moon mission.

But over at Tesla, investors are demanding receipts. A coalition of major shareholders just fired off a letter to the board, insisting Musk clock at least 40 hours a week at the EV maker as its sales slip, reputation drops, and stock lags. With Musk’s attention split between Tesla, SpaceX, xAI, and his political ventures, shareholders want stronger oversight, a clear succession plan, and a CEO fully present in the driver’s seat.

MARKETS

*Stock data as of market close*

  • Markets edged lower Wednesday as investors sat tight ahead of Nvidia’s earnings, seen as a key litmus test for Big Tech amid tariff headwinds.

  • The Dow dipped 0.6%, the S&P 500 slipped 0.5%, and the Nasdaq followed suit, down 0.5%, as Fed minutes flagged lingering inflation risks and Treasury yields briefly topped 5%. All eyes stayed glued to AI King Nvidia, whose report could make or break the markets.

STOCKS
Winners & Losers

What’s up 📈

  • Joby Aviation soared 28.78% after securing a $250 million investment from Toyota. ($JOBY)

  • Box jumped 17.23% after beating earnings and raising full-year guidance. ($BOX)

  • Abercrombie & Fitch climbed 14.67% after beating earnings and revenue despite tariff concerns. ($ANF)

  • Vail Resorts rose 8.67% after bringing back former CEO Rob Katz. ($MTN)

  • Capri Holdings gained 2.79% after posting better-than-expected revenue and strong full-year guidance. ($CPRI)

  • Dick’s Sporting Goods edged up 1.66% on solid earnings and steady fiscal guidance. ($DKS)

What’s down 📉

  • Okta tumbled 16.16% despite strong earnings, as guidance stayed flat amid macro uncertainty. ($OKTA)

  • GameStop dropped 10.85% after revealing it bought over $500 million in bitcoin. ($GME)

  • Cadence Design Systems fell 10.67% after reports of a White House order to stop selling to China. ($CDNS)

  • Synopsys slipped 9.64% on the same China-related chip sales restrictions. ($SNPS)

  • Semtech stumbled 4.56% despite beating earnings and raising its fiscal outlook. ($SMTC)

  • Freshpet fell 3.97% after a downgrade from TD Cowen on growth concerns. ($FRPT)

  • Stellantis dropped 3.15% after announcing a leadership change. ($STLA)

EARNINGS
Nvidia’s Q1 Earnings Show Business Is Still Booming Despite Being Shut Out of China

Nvidia’s latest earnings? Straight fire. Q1 revenue hit $44.1 billion — up a ridiculous 69% year-over-year — beating Wall Street despite a $2.5 billion hit from U.S. export bans to China. Adjusted EPS landed at $0.81, a bit under consensus, but the real win was gross margins: a juicy 71.3%. Gamers surprisingly pulled the weight here, with gaming sales smashing estimates by 32%, while data center sales — the AI moneymaker — came in just a touch light.

Looking Ahead: Still a Juggernaut

For Q2, Nvidia’s aiming for $45 billion in revenue, even though it’s missing $8 billion from China. Wall Street? Unbothered. Shares popped over 5% in after-hours trading, because the company’s Blackwell chips are selling like hotcakes, and global demand for AI hardware is still exploding. Nvidia’s now worth over $3.3 trillion, second only to Microsoft. Yeah, no one’s feeling sorry for them.

China Who?

CEO Jensen Huang admits China’s a mess — stricter U.S. controls have effectively locked Nvidia out of a $50 billion AI chip market, a painful hit no matter how you slice it. But Huang’s not sitting around sulking. Nvidia’s loading up elsewhere, pulling in big money from sovereign AI projects in the Middle East and riding a spending frenzy from U.S. tech giants like Amazon, Microsoft, and Google, all doubling down on AI infrastructure. Huang even teased that they might cook up a new chip design that cleverly skirts U.S. export bans — though for now, it’s just an idea on the whiteboard, not a product on the shelf.

One Fun Takeaway: For all the talk about Nvidia riding the AI wave, it was good old gaming that quietly saved the quarter. Yep, the same folks hunting virtual zombies and farming loot boxes are helping fund the global AI arms race. Funny how that works — and here’s the kicker: the gaming division’s resilience shows Nvidia still has a core business outside of AI, giving it a safety net if AI demand ever cools or regulatory walls keep rising.

NEWS
Market Movements

COURTS
US Court Of International Trade Blocks Trump’s Sweeping Tariffs

Markets are rallying in after-hours trading after the U.S. Court of International Trade struck down most of President Trump’s sweeping global tariffs, calling them illegal and beyond presidential authority. Investors, clearly tired of the months-long trade rollercoaster, are cheering the prospect of calmer waters ahead.

A Major Blow to Trump’s Economic Playbook

A three-judge panel ruled Trump’s use of the International Emergency Economic Powers Act (IEEPA) to impose broad tariffs was an overreach. While older levies like steel and aluminum tariffs stay put, Trump’s global flat tariffs, his retaliatory “reciprocal” duties, and his fentanyl-related tariffs on China, Canada, and Mexico are now blocked. The White House says it will appeal — possibly all the way to the Supreme Court but for now, the court’s decision puts a sharp check on one of Trump’s signature economic moves.

Markets Exhale, Diplomacy Scrambles: Investors had been bracing for months of tariff-fueled volatility, but the court’s move gives them a reprieve — at least for now. Stocks tied to global supply chains popped in after-hours trading as Wall Street bet on a cooling of the trade tensions that have battered everything from manufacturing to tech. But while markets breathe easier, global diplomats are left scrambling: the ruling throws a wrench into ongoing negotiations with China, Europe, and beyond, as the legal footing for Trump’s tariff pressure suddenly crumbles.

What’s Next? The ruling opens up big questions about how future administrations — not just Trump’s — can wield trade powers without Congress. If the court’s decision holds, presidents may lose one of their biggest economic pressure tools, reshaping how the U.S. negotiates on the global stage. For companies, it’s a temporary breather but it also signals that the era of executive-driven trade wars may be heading toward a more legally constrained future.

Calendar
On The Horizon

Tomorrow

Thursday’s shaping up to be a data-heavy day, with initial jobless claims, pending home sales, and — the big one — a fresh look at Q1 GDP. Everyone from Wall Street to Washington will be watching to see if the economy really stumbled as badly last quarter or if the first estimates painted too bleak a picture.

On the earnings stage, get ready for a flood of updates from heavyweights like Costco, Best Buy, Dell, Marvell Technology, Zscaler, Li Auto, Ulta Beauty, The Gap, Bath & Body Works, Burlington Stores, and Cracker Barrel. Expect plenty of post-call chatter as analysts sift through who’s holding up under the weight of tariffs and shifting consumer trends.

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NEWS
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