Market Overview - The tech sector experienced a significant decline, with the Nasdaq Composite dropping by 2.5% and the S&P 500 by 1.2% due to profit-taking and high valuations concerns [1] - Federal Reserve Chairman Jerome Powell's remarks on potential interest rate cuts led to a recovery in major indices, with the S&P 500 and Dow Jones Industrial Average ending the week higher, the latter reaching an all-time high [3] Company-Specific Insights - Palantir's stock reached a record high of $190 following strong Q2 earnings, but an overheated P/E ratio of 193 caused investor retreat [2] - Nvidia is expected to report significant year-over-year growth in Q2, with EPS projected to rise by 47% and revenue by 53%, driven by demand for their Blackwell Ultra chip [4] - Concerns regarding Nvidia's revenue from China have emerged, with potential exclusion of direct revenue due to pending license approvals and evolving export controls [5] Retail Sector Performance - TJX Companies reported better-than-expected Q2 results, benefiting from lower tariff exposure and value-seeking consumers [6] - Ross Stores also exceeded EPS expectations and provided positive guidance for Q3 [7] - Specialty and apparel retailers face challenges, with Citi downgrading Abercrombie & Fitch, Gap, and Urban Outfitters due to tariff risks and inventory management issues [9] Upcoming Earnings - A total of 1,383 companies are set to report earnings next week, with 79% of companies in the universe having reported thus far [10] - The next earnings season will begin on October 14, featuring major banks like JPMorgan, Citigroup, and Wells Fargo [10]

Core Viewpoint - Nvidia has experienced significant demand for its AI products, leading to record earnings, but its stock price has recently faced challenges due to broader market concerns, particularly related to potential tariffs on imports [2][3]. Group 1: Company Performance and Market Position - Nvidia's stock surged last year due to high demand for its AI products from major tech companies [1]. - Despite record earnings, Nvidia's stock price has stumbled amid market-wide concerns about tariffs proposed by President Trump [2]. - The company is well-positioned to handle potential tariffs, with a recent move to increase U.S. production and $43 billion in cash reserves [3]. Group 2: Upcoming Events and Innovations - Nvidia CEO Jensen Huang is set to deliver a keynote at Computex on May 19, focusing on AI and next-generation technology [6]. - Investors are particularly interested in updates on Nvidia's innovations, including the Blackwell Ultra chip and Vera Rubin architecture, which were previously announced [7][8]. - The potential announcement of Arm Holdings-based processors for PCs in collaboration with MediaTek could mark a significant advancement for Nvidia in the Windows operating system market [8]. Group 3: Investment Considerations - The upcoming Computex event could generate excitement about Nvidia's future growth in AI, potentially impacting stock performance [10]. - While it may not be necessary to rush into buying Nvidia shares before the keynote, the stock is considered reasonably priced at 26 times forward earnings estimates [11]. - Overall, it is suggested that buying Nvidia now or after the Computex event could be a sound investment strategy [12].