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Market Data Table

Breakfast News: NVDA Earnings to Take Center Stage

May 18, 2026

Friday's Markets
S&P 500 7,409 (-1.24%)
Nasdaq 26,225 (-1.54%)
Dow 49,526 (-1.07%)
Bitcoin $79,059 (-2.71%)

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Chart comparing Nvidia's stock performance over the past 12 months to that of the S&P 500, with Nvidia up 66% and the S&P up 24%.

1) Nvidia to Close Out "Magnificent Seven" Earnings

Eyes turn toward first-quarter earnings from Nvidia (NASDAQ:NVDA), due Wednesday, after the chipmaker -- beating the S&P 500 by 95% since 2024's recommendation in Hidden Gems -- saw its market cap briefly edge above $5.7 trillion last week. With the company seen as a bellwether for the whole artificial intelligence (AI) business, analysts expect around 80% revenue growth year over year (YOY).

Nvidia makes up 9% of S&P 500 valuation: Ben Snider at Goldman Sachs (NYSE:GS) noted last week that the S&P 500's 10% rise so far this year is heavily led by AI stocks, with Nvidia contributing 20% of the index's total 2026 returns to date. Nvidia -- also recommended by Team Rule Breakers -- fell 4.4% Friday as markets cooled.
S&P 500 up seven weeks in a row: Friday's dips left the S&P 500 in positive territory -- but only just, with a 0.1% gain -- while the Nasdaq slipped back 0.1%. S&P 500 futures dropped 0.3% in early trading, while Nasdaq futures remained steady, as Middle East tensions continue.

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2) Retail Earnings in View

TJX (NYSE:TJX) -- recommended in Stock Advisor by Team Hidden Gems -- will post first-quarter results on Wednesday. Last month, Fool contributing analyst Jason Hall described TJX as "one of the three best retailers I can think of … incredible at knowing its business, knowing its customers, knowing what it does better than anyone." Analysts predict a 6% YOY revenue rise.
Walmart (NASDAQ:WMT), often seen as a barometer for consumer spending, reports Q1 on Thursday. Wall Street is expecting another strong quarter, following a 12% earnings-per-share (EPS) rise in the final quarter of fiscal 2026. Management previously guided for 6% to 8% operating income growth for fiscal 2027.
Home Depot (NYSE:HD) leads both of these with a Q1 update Tuesday morning. After the Dividend Investor Foundational Stock saw net sales contract 3.8% YOY in its fourth quarter, investors should watch comparable sales performance as a weak housing market adds pressure. Margins are a bit squeezed, too.

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3) What Else to Watch This Week

Baidu (NASDAQ:BIDU) posted a 49% YOY rise in Baidu Core AI-powered Business in Q1 this morning -- to exceed 50% of Baidu General Business for the first time -- and called it "a clear signal that AI has become the core driver." It follows pressure on profits in Q4 as the company transitions from traditional advertising. The stock gained 2% in early trading as a result.
Take-Two Interactive Software (NASDAQ:TTWO) -- recommended by Team Rule Breakers -- closes its fiscal year with a Q4 update on Thursday, following a 25% rise in Q3 revenue. Speculation over the impending launch of Grand Theft Auto VI is growing after leaks and rumors suggest a possible event today.
e.l.f. Beauty (NYSE:ELF) reports its final quarter of fiscal 2026 on Wednesday. The inflationary squeeze has hit the stock price, though the company -- recommended by both Team Hidden Gems and Team Rule Breakers -- saw sales jump 38% in Q3, and management raised full-year guidance. Forecasts suggest a revenue rise of 28% YOY.

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4) Berkshire Hathaway's Portfolio Shakeup

Berkshire Hathaway (NYSE:BRKB) revealed significant changes to its stock portfolio on Friday, marking the first full quarter under new CEO Greg Abel. According to a regulatory filing, the conglomerate acquired a $2.6 billion stake in Delta Air Lines (NYSE:DAL), returning to a stock it previously exited in 2020. Berkshire also added a $55 million stake in Macy's (NYSE:M) and bought nearly 40 million additional shares of Alphabet (NASDAQ:GOOG).

Chevron (NYSE:CVX) stake cut by $2.4 billion: Abel also reduced Berkshire's Bank of America (NYSE:BAC) holding by $3.4 billion. And he exited UnitedHealth (NYSE:UNH) -- which subsequently fell around 4% in pre-market trading -- along with Amazon (NASDAQ:AMZN), Domino's Pizza (NASDAQ:DPZ), Mastercard (NYSE:MA), and Visa (NYSE:V), which were all relatively small holdings.
Maintaining a concentrated approach to investing: Abel, who took over in January, noted at Berkshire's recent annual meeting that he and Warren Buffett still collaborate on stock purchases -- and he left Berkshire's big stake in Apple (NASDAQ:AAPL) unchanged.

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5) Your Take

Year to date, would you say you've bought more stock than you've sold, sold more stock than you've bought, maintained roughly an even split, or mostly sat on your hands?

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