Nvidia, AMD and Tesla Climb as Rate Pressure Eases

Nvidia and AMD shares rose in premarket trading on Monday as Wall Street extended Friday's technology-led rally after a weak US jobs report. The S&P 500 closed at a record on Friday after July payrolls unexpectedly fell by 23,000, pushing the probability of a September Federal Reserve rate increase down to roughly 44%. Nvidia stock has the cleanest case for another breakout, with shares jumping 11.6% last week, their best weekly advance since May 2025, after Elon Musk said SpaceX would build its future AI infrastructure exclusively on Nvidia's Vera Rubin architecture.

AWS analyst Chris Caso said SpaceX's planned computing expansion alone could account for more than the $160 billion of incremental Nvidia data-centre growth Wall Street expects in 2027. Caso argued that consensus estimates looked 'very conservative' and that this gives Nvidia more than a rate-sensitive bounce. Investors have recently favoured established market leaders such as Nvidia over competitors still needing to prove execution.

AMD's setup is different, with revenue reaching a record $11.54 billion in Q2, up 50% year on year. However, its adjusted gross-margin guidance of 56%, unchanged from Q2, disappointed investors looking for stronger operating leverage from booming AI demand. Analyst Susquehanna expects AMD's server CPUs to remain strong and sees a data-centre GPU revenue ramp later this year as MI450 chips and Helios deployments accelerate.

Tesla stock remains the wildcard before CPI, with its rebound depending on investors believing its autonomy story can eventually outweigh weak near-term profitability. Jefferies cut its target to $350 from $400 and retained a Hold rating after reducing its 2026 EBIT forecast by 37% to $3.9 billion, citing disappointing second-quarter operating leverage.