Nvidia earnings, AI infrastructure risks lead Wall Street watchlist this week

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Nvidia earnings, AI infrastructure risks

Highlights

Nvidia set to report earnings Wednesday night and has warned customers of potential AI server price increases due to higher memory costs, raising margin concerns.
Political opposition to data centers has intensified in Texas and Pennsylvania ahead of midterm elections, pressuring the broader AI infrastructure outlook.
Jefferies raises CrowdStrike’s price target to $230 from $190 despite a 15% stock pullback, while UBS upgrades Celestica to buy on strong AI-related demand and strategic shift.

AI earnings and market catalysts in focus

As reported by CNBC, stock futures recover from their morning lows after CNBC correspondent Steve Liesman says the Treasury Department could use its General Account to help support bond-buying plans, helping push longer-dated Treasury yields lower early Monday.

Nvidia is set to report Wednesday night, with the chipmaker remaining the week’s main focal point for the AI trade. Bloomberg News reports that Nvidia has told customers to expect price increases on AI servers because of memory costs, adding another issue for investors assessing whether strong demand can offset margin and supply concerns.

The AI theme also faces pressure beyond earnings. Political backlash against data centers is growing as the midterm elections approach, with opposition in Texas and more recently Pennsylvania weighing on the group’s outlook.

CrowdStrike also reports Wednesday night after the stock pulls back roughly 15% since the Aug. 13 close, following a sharp four-month rally. Jefferies says expectations remain high, although its channel checks are incrementally positive, and the firm raises its price target to $230 from $190.

UBS upgrades Celestica to buy from hold, citing strong demand for ethernet switching and networking platforms. The company continues its shift from lower-margin contract manufacturing toward higher-growth equipment design, including AI server racks, and is working with Broadcom and OpenAI on the Jalapeno chip project.

In our earlier coverage of the U.S. data-center buildout tied to AI, we explained that demand for memory chips remains strong, led by Micron’s major capacity expansion plans in Idaho and New York. We also noted that the bigger near-term risk for the sector is growing political and permitting resistance in states such as Texas and Pennsylvania, which could slow project timelines even without any clear sign of demand softening.

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