AI, Consumers, and Industrials Collide: Nvidia, Walmart, and Deere Dominate Earnings Week

Market Watch: Pivotal Earnings Week to Set the Tone for 2025

This week’s earnings reports from tech, retail, and industrial giants are set to be a defining moment for market sentiment. With Nvidia, Walmart, Target, and Deere & Company leading the lineup, traders will be watching closely to gauge sector health and economic resilience as 2025 approaches.

Tech: Nvidia’s AI Revolution Faces a Reality Check

Nvidia, the leader in artificial intelligence chips, reports Wednesday and is expected to post explosive growth: an 85% rise in EPS to $0.74 and an 82% jump in revenue to $33 billion. Analysts are confident Nvidia will continue its streak of exceeding revenue estimates, driven by skyrocketing demand from hyperscale and enterprise customers.

The stakes are high—Nvidia’s guidance on AI chip supply and customer spending trends will likely ripple through the entire tech sector. A strong performance could bolster tech’s leadership, while any signs of slowing demand might spark a sector-wide reassessment.

Retail: Walmart and Target Test Consumer Strength

Walmart kicks off Tuesday, with analysts forecasting EPS of $0.53 (+3.9% YoY) and $166.4 billion in revenue (+4.4% YoY). Its competitive pricing and Walmart+ membership gains have made it a consumer spending bellwether, especially in an inflation-sensitive environment. Investors will watch for clues about holiday shopping trends and inventory levels.

Target’s Wednesday report adds a key cross-reference, particularly for discretionary spending and holiday readiness. Meanwhile, Lowe’s results may shed light on challenges in big-ticket purchases tied to a cooling housing market.

Industrial: Deere’s Challenges Raise Broader Questions

Deere & Company, reporting Thursday, faces a projected 52% drop in EPS to $3.93 and a 32.7% revenue decline to $9.3 billion. Declining crop prices, weak retail sales, and production cuts are dragging the company down. Deere’s outlook could act as a barometer for industrial health, with implications for global economic trends heading into 2025.

Broader Impact: Earnings to Drive Sentiment

Beyond these major players, updates from Procter & Gamble, TJX Companies, Intuit, and Baidu will round out the picture. Procter & Gamble’s investor day could provide insights into global consumer trends and supply chain strategies, while Baidu’s results will signal progress in China’s recovery.

Forecast: Cautious Optimism or Correction Ahead?

Nvidia’s performance could reinforce tech’s dominance, while Walmart and Target will offer critical insights into consumer resilience. Deere’s outlook may dampen industrial sentiment, raising caution flags. This week’s earnings will determine if markets end the year with momentum or face recalibration as 2025 looms.