London pre-open: Stocks to gain ahead of Nvidia results
By Michele Maatouk
Date: Wednesday 27 Aug 2025
(Sharecast News) - London stocks were set to gain at the open on Wednesday following losses in the previous session, as investors eyed the latest results from Nvidia.
The FTSE 100 was called to open around 35 points higher.
Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said: "Nvidia now accounts for around 8% of the S&P 500 and is the flagship of the AI theme, so its results - or the market's reaction to them - could be market-moving, even trend-reversing.
"The company is expected to deliver around $46bn in revenue, largely driven by AI spending from giants like Microsoft and Meta, which account for about 40% of sales. Margins could benefit from recent export ban exemptions granted by the Trump administration. But the China story remains uncertain: Beijing is now pressuring domestic firms to buy local chips, which could erode Nvidia's Chinese revenue share (currently about 13%).
"The Middle East, however, has emerged as a new growth region. With Nvidia trading on a lofty PE of circa 58, strong growth is essential to justify valuations. Options pricing implies a 6% move in Nvidia shares, which could translate into a circa 0.8% swing in the S&P 500."
She added: "Even if Nvidia beats expectations, investors might use strength as an opportunity to take profits, which could accelerate a correction."
In UK corporate news, sports fashion retailer JD Sports said it expects FY26 pre-tax profits to meet current market expectations despite seeing group sales fall in the six months ended 2 August.
JD Sports said first-half group sales were down 2.5% on a like-for-like basis at £5.94bn, with North American sales down 3.8% at £2.31bn, UK sales dropping by 3.3% to £1.46bn, Asia sales slipping 2.4% to £238m and European sales contracting 0.4% to £1.92bn.
Hochschild Mining cut its full-year production target after problems at its Mara Rosa operation due to weather and contractor issues.
The company now expects to produce 291,000- 319,000 gold equivalent ounces, down from a prior forecast of 350,000-378,000 ounces. Mara Rosa's production target was revised down to 35,000-45,000 ounces from 94,000-104,000.
Hochschild's interim adjusted core profit rose 27% to $225m on the back of soaring gold prices due to US President Donald Trump's global tariff war as investors sought a safe haven for their cash.
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