Nvidia (NVDA)

Shares in Nvidia bounced back in pre-market trading, recouping from Friday losses which were sparked by fears the AI darling's rally might be losing steam.

New Street Research recently downgraded the stock to Neutral from Buy and set the stock’s price target at $135 (￡104.41).

“We downgrade the stock to Neutral today, as upside will only materialise in a bull case, in which the outlook beyond 2025 increases materially, and we do not have the conviction on this scenario playing out yet.” New Street analyst Pierre Ferragu said.

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A recent report from Goldman Sachs suggested that AI might not be quite as game changing as the headlines suggest. And that investing big into AI stocks at today’s prices might disappoint.

"Do you know what this all reminds me of? Yes, the internet revolution, and the dot com bubble that it created. I lived, and invested, through it," John Mackey, former CEO of Whole Foods Market, said.

Still, the chip manufacturer is moving markets, with Serve Robotics (SERV) seeing its stock price skyrocket by 140% on Friday following the announcement that Nvidia had acquired a substantial stake in the company, which specialises in low-emissions sidewalk delivery robots.

SAP (SAP)

SAP's Q2 2024 earnings will be a barometer for the tech sector, reflecting on enterprise software demand and digital transformation and so far, shares were lower in pre-market trading.

Analysts expect SAP SE to post quarterly earnings at $1.16 per share on revenue of $8.84bn. The company will release earnings after the markets close.

SAP delivered first-quarter 2024 non-IFRS earnings per share (EPS) of €0.81, which increased 8% year over year. The company reported total revenues on a non-IFRS basis of €8.04bn, which increased 8% year over year.

Our estimate for cloud revenues (on a non-IFRS basis) for the second quarter is pegged at €4.04bn, up 21.7% from the year-ago quarter,” analysts at Zacks Equity Research, wrote.

“Rise with SAP solution continues to gain significant traction and will aid the company in expanding its market share in the cloud enterprise resource planning (ERP) solutions space. In the last reported quarter, Cloud ERP Suite revenues were up 31% year over year,” they added.

Starbucks (SBUX)

Starbucks shares continue to surge – now in pre-market trading – after a report in the Wall Street Journal that activist investor Elliot bought a sizable stake in the company.

The activist hedge fund and coffee chain have been holding private discussions in the last weeks on ways to move the chain’s stock price higher.