NVIDIA and Salesforce Face Key Tests Next Week Amid Strong Demand

NVIDIA is expected to report another record-breaking quarter in its second-quarter results next week. The company's revenue growth is predicted to exceed 100% year-over-year, driven by strong demand for its products. This will be the first quarter without China data centre sales in the prior-year comparison, providing a cleaner picture of the momentum across the wider business.

The key number to watch for NVIDIA will be its gross margin, which is expected to remain around 75%. Investors will also want to hear management reiterate their commitment to achieving this target through the rest of the year. Additionally, NVIDIA's positioning as the orchestrator of the AI buildout will likely come under scrutiny, with questions focusing on the financing ecosystem and revenue-sharing agreements.

Another company reporting next week is Salesforce, which is expected to post revenue growth of around 11% in its second-quarter results. However, the key question is whether the company's AI momentum is translating into stronger revenue growth. Investors will want firmer evidence that management's promised acceleration in underlying subscription growth remains on track for the second half.

Prudential is also reporting next week, with new business profit expected to grow by around 10-11%. Maintaining double-digit growth would keep the group on track with full-year guidance. However, a tougher comparison in Hong Kong and lower-margin savings products in China and Singapore may weigh on profitability.