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Equity futures, which are being pulled lower by a pre-market decline in Nvidia (NVDA) shares,  point to a soft market open later this morning. While Nvidia delivered October quarter results that topped market expectations, its January quarter top-line guidance of $36.75-$38.25 billion encapsulated the $37 billion consensus forecast but fell short of more lofty expectations near $40-$41 billion. Let’s keep in mind that with its January quarter revenue range, Nvidia is expected to deliver 66%-73% top-line growth. The transition to capacity-constrained Blackwell, Nvidia’s newest offering is weighing on margins but those are expected to rebound as the product matures.

What stood out to us for our Digital Infrastructure and Cloud Computing models was Nvidia’s data center revenue more than doubling year-over-year to $30.8 billion. While Wall Street may be somewhat disappointed by Nvidia’s guidance, the vast majority of signs point to AI adoption still being in the relatively early innings. With that in mind, we’d suggest you see today’s Artificial Intelligence model signals below. 

As the market digests the implications of Nvidia’s results and earnings call comments, we’ll contend with a trio of Fed speakers today as we get ready for tomorrow’s November Flash PMI data from S&P Global. Following Target’s (TGT)sobering holiday shopping comp sales guidance and affirmation consumers remain selective, we’ll get another look at shopping expectations for the current quarter with results from BJ’s Wholesale (BJ), Gap (GPS), and Ross Stores(ROST) later today. Tallying expectations from those four companies and those from Walmart (WMT) earlier this week will clue investors into what Best Buy (BBY), Macy’s (M), Kohl’s (KSS), and others will have to say next week ahead of the Black Friday-Cyber Monday shopping weekend. Based on the comments received thus far, it is shaping up to be more of a Cash-Strapped Consumer holiday shopping season than a Luxury Buying Boom one. 

When we parse today’s retail-facing comments, we’ll also be digging into quarterly results today from Construction Road Partners(ROAD) and Elastic (ESTC) for data points on our Rebuilding America and Artificial Intelligence models.

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