Nvidia earnings, Fed minutes, and Anthropic’s IPO all land between Tuesday and Thursday in the coming week. Each will test an AI selloff that has also spilled into crypto.
Rates add a second layer of risk. Traders now price in a December Fed rate hike, which could add pressure on both markets.
Can Nvidia’s Last Full Quarter Under Huang Steady AI Stocks?
Nvidia goes first on Tuesday after the close, with results for a quarter Jensen Huang still ran.
He resigned as CEO on November 12, leaving finance chief Colette Kress in charge as interim CEO.
His exit deepened the stock’s slide. Nvidia shares sank more than 10% that day and are now down 12.68% this year.
Nvidia (NVDA) Stock Performance. Source: Google Finance Expectations remain high regardless. Zacks consensus puts earnings per share (EPS) at $2.49 on $108.99 billion in revenue. Analysts have even nudged that EPS figure up by a penny over the past 60 days.
That revenue estimate tops the $108 billion midpoint Nvidia set in its August outlook. A result that only matches guidance could still disappoint.
There is also a precedent for interim handovers. After Intel put its finance chief in charge in 2018, its stock lost 11.7% that year.
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Could Wednesday’s Fed Minutes Back a December Rate Hike?
The Fed then releases minutes from its October 27 to 28 meeting on Wednesday at 2 p.m. ET.
Policymakers held rates at that meeting. Since then, hot October inflation data has made a December hike look certain.
CME FedWatch odds now put a December rate hike at 100%. Traders also see an 11.5% chance that the Fed raises by half a point.
Fed Rate Hike Odds in December. Source: CME FedWatch With the hike itself priced in, the bigger question is how far tightening goes after December. The minutes may reveal appetite for more hikes, which could weigh on equities.
Higher rates tend to weigh on assets valued on future growth, which includes both AI stocks and crypto. The Fed’s next decision comes on December 9.
Can Anthropic’s $64 Billion IPO Revive Appetite for AI?
Anthropic follows the minutes later on Wednesday, when it expects to price its IPO. The firm plans to offer 825 million Class A shares at $70 to $78, worth up to about $64.4 billion.
Trading under the ticker ANT should begin Thursday on Nasdaq, subject to regulatory clearance.
The deal also ties back to Nvidia. Seven firms, including Nvidia, agreed to buy $26 billion of non-voting stock in a placement alongside the IPO.
At the top of its range, Anthropic would be worth up to $1.4 trillion, fully diluted. That sits below the roughly $2 trillion it had been looking toward.
What Would It Take for the AI Selloff to Ease?
The three events land within 48 hours, and each could shift sentiment on its own.
A beat from Nvidia, paired with a steady outlook from interim CEO Colette Kress, would ease concerns about the leadership change.
A strong Anthropic debut would add to that signal. CNBC’s Jim Cramer has said a real recovery in AI stocks hinges on Anthropic’s IPO.
If both land well, the AI selloff could start to ease. That relief may also reach crypto, which fell alongside AI stocks in early November.
A hawkish tone in the Fed minutes, however, could still cap any rebound.
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https://youtu.be/ewEUYZVu-gwRead the Original story 3 Key Events in the Coming Week That Could Move AI Stocks and Crypto by Kamina Bashir at beincrypto.com