Tonight’s Highlights | Nvidia Stock Dips 5% Post-earnings But Later Recovers; Analysts Back Strong Performance  

On Thursday, U.S. stock index futures edged higher pre-market.  

 

 

As of this report, Dow Jones futures rose 0.15%, S&P 500 futures gained 0.05%, and Nasdaq 100 futures ticked up 0.04%. The previous trading day saw all three major U.S. indices close higher, with the S&P 500 hitting a new closing high, but traders are focused on Nvidia’s after-hours earnings report.

 

Nvidia’s revenue and profit beat expectations, but its key data center business fell slightly short of forecasts for two consecutive quarters, causing a 5%+ drop in after-hours trading. As of this report, Nvidia has recovered all losses.  

 

Melius tech research head Ben Reitzes noted that Nvidia’s new Blackwell chip sales were slightly below some expectations due to production ramp-up time, but he acknowledged the guidance was robust. Broadcom’s slight pre-market gain signals market confidence in the AI sector.

 

Aptus Capital Advisors’ equity head David Wagner said, “Investors should buy Nvidia on the dip.” Wagner highlighted Nvidia’s $50 billion quarterly revenue growth pace as remarkable at its current valuation.

 

Post-earnings, several analysts raised Nvidia’s price targets: Bank of America from $220 to $235, Morgan Stanley from $206 to $210, Citigroup from $190 to $210, JPMorgan from $170 to $215, Bernstein from $185 to $225, Jefferies from $200 to $205, Deutsche Bank from $155 to $180, Truist Securities from $210 to $228, and Argus Research from $150 to $220.  

 

Traders also eye upcoming data impacting rate expectations. The U.S. Bureau of Economic Analysis revised Q2 GDP growth from 3% to 3.3%, above the 3.1% forecast. The key inflation gauge—Q2 PCE price index—rose 2.4% annually, with the core index up 2.7%, both in line with expectations. The July PCE report is due Friday pre-market.  

 

European markets were mixed, with Germany’s DAX up 0.12%, the UK’s FTSE 100 down 0.29%, and France’s CAC 40 up 0.5%.  

Company news  

Boeing seeks EU approval for $4.7B Spirit AeroSystems buyback  

 

EU Commission documents show Boeing is seeking approval to repurchase Spirit AeroSystems, the world’s largest independent aerospace structures maker, for $4.7 billion in stock. Airbus will take over Spirit’s loss-making Europe-focused operations.

 

The EU is expected to decide by September 30. The UK’s competition regulator recently approved the deal, finding no need for an in-depth anti-competition probe.  

 

Li Auto posts Q2 earnings, maintains 11-quarter profit streak  

 

Li Auto’s Q2 2025 earnings showed revenue and profit growth despite fierce competition, with revenue at 30.2 billion yuan, up 16.7% from Q1, and profit at 1.1 billion yuan, marking 11 consecutive profitable quarters.

 

With over 100 billion yuan in cash reserves, Li Auto invests over 10 billion yuan annually in R&D, including 6 billion in AI. Its self-developed chip will debut next year.  

 

Trip.com Group authorized for up to $5B stock buyback  

 

Trip.com Group announced that, as of August 27, 2025, it repurchased 7 million ADSs for $400 million under its February 2025 buyback plan.

 

The board approved a new plan, authorizing up to $5 billion in repurchases of ordinary shares and/or ADSs, to be conducted based on market conditions and applicable laws.  

 

Toyota’s July production and sales hit record highs  

 

Toyota’s July production and sales set new records, extending its growth streak for seven months. Global sales, including Daihatsu and Hino, rose 4% to 963,796 vehicles. Japan sales fell 2%, but overseas markets grew 6%.

 

Toyota and Lexus sales in North America surged 20%, driven by trucks, SUVs, and hybrids. In China, sales grew 5.7%.