Josh Gilbert, market analyst at eToro, shares his three things to watch in Australia in the coming days.
Nvidia earnings
Nvidia Corp is set to report its fourth-quarter earnings on Thursday morning in Australia. The chip manufacturer has maintained its strong momentum, with shares rising 100% over the past 12 months amid the artificial intelligence (AI) boom.
Major technology firms, including Amazon, Meta, Microsoft and Alphabet, are ramping up capital expenditures on AI infrastructure, injecting tens of billions of dollars into the sector.
Nvidia continues to dominate this space, supplying the powerful chips that fuel AI advancements, positioning the company as a key beneficiary regardless of which firm emerges as the leader in AI.
However, competition is mounting. Chinese AI chip developer DeepSeek recently disrupted the market, erasing US$600 billion from Nvidia’s market value in a single day in late January. DeepSeek’s innovative approach could reduce reliance on Nvidia’s high-end graphics processing units, potentially threatening its market dominance.
Additionally, Nvidia faces production constraints, with demand outstripping supply. While executives have expressed confidence in exceeding “several billion dollars” in Blackwell revenue for the quarter, limitations in production capacity present growth challenges.
Analysts expect Nvidia to report revenue of US$38.2 billion and net income of US$20.9 billion. Investors will be looking for another strong quarter and raised guidance, as market expectations remain high.
Qantas 1H results
Qantas will announce its first-half fiscal year 2025 (H125) results on Thursday, with sentiment suggesting that the airline’s brand revival strategy is yielding results.
Since Vanessa Hudson took over as CEO following Alan Joyce’s controversial departure, the company has focused on restoring its reputation.
Qantas shares have surged more than 60% in the past year and the airline topped YouGov's ‘Biggest Brand Movers’ list for January, reflecting improved consumer sentiment.
Stability has been the core focus — across pricing, services and customer experience. While this approach has affected short-term profitability, Qantas has maintained its optimistic guidance since October, and analysts expect the company to meet profit forecasts.
However, a key concern looms. Virgin Australia has overtaken Qantas as the country’s largest and most reliable airline, according to the Australian Competition and Consumer Commission (ACCC).
This shift in market position could lead to Virgin Australia relisting on the Australian Securities Exchange (ASX), increasing competition.
While Qantas has rewarded loyal investors, the airline must remain competitive to sustain its recovery. A potential dividend return remains a key point of interest for investors.
Coles and Woolworths 1H results
Coles and Woolworths are set to release their fiscal year 2025 (FY25) half-year results this week. With continued scrutiny from the ACCC and public frustration over rising grocery prices, these updates will be closely monitored, particularly as the ACCC is expected to submit its final report on supermarket pricing to the government by Friday.
Coles has started the year positively, reaching an all-time high share price of A$19.84 last week. Investors are optimistic about the upcoming results.
Conversely, Woolworths has faced challenges, with its stock down 9% over the past 12 months. A 17-day strike by 1,500 warehouse staff at the end of last year resulted in an estimated A$140 million in lost sales, with further earnings impact expected in the second quarter.
Despite these challenges, both retailers stand to benefit from population growth and potential interest rate cuts by the Reserve Bank of Australia (RBA), which could boost consumer confidence and spending.
The long-term growth strategy for both companies will hinge on their e-commerce advancements, a critical factor for sustaining market competitiveness.