Nvidia’s new AI chip, Unilever restructuring, and Nike earnings Nvidia’s new AI chip, Unilever restructuring, and Nike earnings Nvidia’s new AI chip, Unilever restructuring, and Nike earnings

Nvidia’s new AI chip, Unilever restructuring, and Nike earnings

Equities 4 minutes to read
Peter Garnry

Chief Investment Strategist

Key points:

  • Nvidia launched Blackwell GPU exceeding expectations with 2.5x better performance than the previous generation and announced new NVLink switches, analysts are positive with a 12-month price target of $932.

  • Unilever is restructuring to save €800mn in costs over the next three years and separating its €7.9bn ice cream business, analysts have a 12-month price target of GBp 4,256.

  • Nike reports earnings on Thursday, analysts expect revenue to be down 0.7% YoY and EPS down 6.1% YoY, analysts have a 12-month price target of $119.

Nvidia launches Blackwell chip to extend edge

Nvidia’s GTC AI conference is in full swing and yesterday the world’s leading AI chip maker announced its new Blackwell GPU which is expected to extend the company’s lead in AI chips. The Blackwell GPU platform comes with 2.5x greater performance than its H100 platform (Hopper chip) which will likely widen Nvidia’s leading position. Nvidia also announced a new NVLink switches supporting the trend of AI networking becoming a new growing business in servers. The conference will continue until Thursday and we expect the news flow to continue to be positive for AI related stocks including Nvidia.

Analysts have a 12-month price target of $932 which around 5% higher than the current price with 90% of analysts covering the stock having a positive view on the stock. Nvidia is expected to report FY25 Q1 (ending 30 April) on 24 May with analysts expecting revenue growth of 234% YoY and EPS of $5.44 up 522% YoY.

Nvidia shares | Source: Saxo

Unilever is trimming the business and offering an ice cream to the market

Unilever, one of Europe’s largest fast-moving consumer goods companies, shares are up 5% this morning as the company is announcing a big restructuring programme to find €800mn in cost savings over the next three years. In our view that is not very ambitious as the world can look very different in three years and the risk is that Unilever never end up achieving those costs savings.

In addition to the cost savings programme, Unilever is separating its global ice cream business which has annual sales of €7.9bn in 2023 and include brands such as Magnum and Ben & Jerry’s. The separation is starting immediately and is expected to be finished by the end of 2025, so again the market may conclude that things are moving too slowly. Analysts have a 12-month price target of GBp 4,256 which is around 6% above the current price.
Unilever share price | Source: Saxo

Nike earnings: Will more disappointment follow?

Nike reports FY24 Q3 (ending 28 Feb) earnings on Thursday at 20:15 GMT (21:15 CET). Analysts expect revenue growth down 0.7% YoY and EPS of $0.74 down 6.1% YoY. Nike continues to face tough competition, a sluggish consumer demand, elevated inventory (will likely decline again in the previous quarter), and thus painting a muted picture in the short term. Nike is taking steps to make strategic price hikes and trimming inventory in order to improve operating margins, so this is the key upside potential if management can succeed with this on top of the recent $2bn cost savings programme that was announced. Analysts have a 12-month price target of $119 which is around 20% higher from the current price.

Quarterly Outlook 2024 Q2

2024: The wasted year

01 / 05

  • Macro: It’s all about elections and keeping status quo

    Markets are driven by election optimism, overshadowing growing debt and liquidity concerns. The 2024 elections loom large, but economic fundamentals and debt issues warrant cautious investment.

    Read article
  • FX: The rate cut race shifts into high gear

    As US economic slowdown hints at a shift away from exceptionalism, USD faces downside with looming Fed cuts. AUD and NZD set to outperform as their rate cuts lag. JPY gains on carry unwind bets and BOJ pivot.

    Read article
  • Equities: The AI and obesity rally is defying gravity

    Amid AI and obesity drug excitement, equities see varied prospects: neutral on overvalued US stocks, negative on Japan due to JPY risks, positive on Europe. European defence stocks gain appeal.

    Read article
  • Fixed income: Keep calm, seize the moment

    With the economic slowdown, quality assets will gain favour, especially sovereign bonds up to 5 years. Central banks' potential rate cuts in Q2 suggest extending duration, despite policy and inflation concerns.

    Read article
  • Commodities: Is the correction over?

    Commodities poised for rebound. The "Year of the Metal" boosts gold and silver, copper awaits rate cuts. Grains may recover, natural gas stabilises. Gold targets $2,300-$2,500/oz, copper's breakout could signal growth.

    Read article

The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
- Full disclaimer (https://www.home.saxo/legal/disclaimer/saxo-disclaimer)
- Full disclaimer (https://www.home.saxo/en-mena/legal/disclaimer/saxo-disclaimer)

Boulevard Plaza, Tower 1, 30th floor, office 3002
Downtown, P.O. Box 33641 Dubai, UAE

Contact Saxo

Select region


Trade responsibly
All trading carries risk. Read more. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more

Saxo Bank A/S is licensed by the Danish Financial Supervisory Authority and operates in the UAE under a representative office license issued by the Central bank of the UAE.

The content and material made available on this website and the linked sites are provided by Saxo Bank A/S. It is the sole responsibility of the recipient to ascertain the terms of and comply with any local laws or regulation to which they are subject.

The UAE Representative Office of Saxo Bank A/S markets the Saxo Bank A/S trading platform and the products offered by Saxo Bank A/S.