Target Slashes Guidance Again as Sales Decline — A Turning Point for the Retail Giant?

Target reported another disappointing quarter, with sales falling for the fourth straight period, and management issued yet another earnings guidance cut. The retailer now faces a critical moment as incoming CEO Michael Fiddelke attempts to reverse a year-long downtrend that has left the stock 36% lower in 2025.

Sales Keep Falling Despite an Earnings Beat

Adjusted third-quarter earnings came in at $1.78 per share, beating expectations of $1.71. But that’s where the good news ends. Sales slipped 1.5% to $25.3 billion, and comparable sales fell 2.7%, marking the fourth consecutive quarter of negative comps.

Executives warned that macro headwinds—uncertainty over the government shutdown, softer labor markets, and inflation sensitivity—continue to weigh on shoppers’ willingness to buy discretionary goods.

The retailer’s latest Target earnings guidance cut lowers full-year EPS to $7–$8, down from $7–$9 previously. GAAP EPS was cut as well.

A New CEO, A Big Turnaround Attempt

Incoming CEO Michael Fiddelke takes command in February, but he is already moving aggressively. He outlined three pillars for the turnaround:

• Merchandising reinvention — strengthening authority in key categories
• Guest experience upgrades — cleaner stores, better digital integration
• Tech acceleration — including AI tools and smarter fulfillment

To support this, Target will boost capital expenditures by 25% in 2026, pushing annual capex to $5 billion. That includes store remodels, redesigns of fulfillment flows, and efforts to reduce the operational strain that online orders have placed on high-traffic stores.

Still, another Target earnings guidance cut underscores how difficult the road ahead may be.

Target Joins Walmart, Shopify, and Etsy in the AI Commerce Push

Target also announced a partnership with OpenAI, allowing shoppers to buy directly through ChatGPT. This places Target among early adopters of AI-powered commerce, following Walmart, Shopify, and Etsy.

The beta launch next week will let customers purchase multiple items, add fresh food to carts, and select fulfillment methods—all within ChatGPT. Fiddelke framed the initiative as part of a broader strategy to reassert Target’s innovation edge.

Bulls vs Bears: Both Camps Found Ammunition

Analysts were split following the report. JP Morgan’s Christopher Horvers said both sides “have something to point to.” Bears cite weakening demand, deteriorating comps, and the ongoing Target earnings guidance cut. Bulls point to improving inventory discipline, healthy margins, and extremely discounted valuation multiples.

Oppenheimer’s Rupesh Parikh maintained an Outperform rating, noting that long-term investors should take advantage of weakness—though volatility may persist until comps turn positive again.

Trading Implications for TGT

📉 Short-Term Bias: Weakness Into Q4

The market reacted negatively to the Target earnings guidance cut, pushing shares lower in early trading. For day traders, the following setups may emerge:

• ORB downside breaks under premarket lows
• Short VWAP rejections during the morning session
• Fade rallies into $130–$132 resistance zones

📈 Swing Traders: Watch for Capitulation

With the stock down 36% YTD and valuation compressed, TGT could become a mean-reversion candidate if:

• RSI reaches oversold levels
• Price stabilizes above major weekly support (~$118–$120)
• Consumer data surprises to the upside

But until comps turn positive, the Target earnings guidance cut will likely keep pressure on the stock.

Bottom Line

Target’s challenges are real: falling sales, cautious customers, and a tough retail landscape. The company’s transformation strategy—AI innovation, store upgrades, and fulfillment restructuring—could pay off, but the payoff won’t be immediate.

Traders should brace for continued volatility as the market digests the latest Target earnings guidance cut and evaluates whether 2026 will finally mark the beginning of a recovery.

Related:

Target (TGT) Q3 2025 earnings
Target CEO Change Overshadows Earnings Report – TraderInsight
Target Corporation Reports Third Quarter Earnings

Nvidia Earnings Smash Expectations and Ignite AI Stocks Across the Board

Nvidia delivered another blockbuster quarter on Wednesday, easily beating Wall Street expectations and setting the stage for what traders are already calling a Nvidia earnings breakout heading into 2025. Shares surged in after-hours trading as the company once again proved that AI demand remains insatiable.

Blowout Numbers Across the Board

For the October quarter, Nvidia reported adjusted earnings of $1.30 per share, beating the $1.26 consensus. Revenue hit $57 billion, topping expectations for $54.9 billion. It was another monster quarter driven almost entirely by AI chips and data center demand.

Nvidia’s data center business — now the core of the company — grew 66% year over year to $51.2 billion, surpassing analyst models and reinforcing why the Nvidia earnings breakout narrative is dominating tech markets.

Guidance: Simply No Slowdown in Sight

Nvidia projected midpoint January-quarter revenue of $65 billion, well ahead of the $62.2 billion consensus.

Even more remarkable: CFO Colette Kress noted this guidance assumes zero revenue from China due to export restrictions. That means upside remains if any allowances or exceptions are granted in early 2025.

AI Demand Is Still “Sold Out”

CEO Jensen Huang made it clear that the AI boom is far from over. Blackwell GPU demand is overwhelming supply, and cloud providers continue to bid aggressively for any available compute capacity.

“Blackwell sales are off the charts, and cloud GPUs are sold out. We’ve entered a virtuous cycle of AI.”
— Jensen Huang, Nvidia CEO

With enterprises adopting AI far faster than expected, and agentic AI applications emerging as a new growth catalyst, the Nvidia earnings breakout trend is likely to extend into 2025 and beyond.

Addressing GPU Depreciation Concerns

Some analysts have questioned whether AI chips depreciate too quickly to justify massive data center spending. Nvidia pushed back hard: Kress emphasized that CUDA compatibility extends the life of GPUs far longer than typical hardware cycles.

“A100 GPUs we shipped six years ago are still running at full utilization today,” she said — another reason the Nvidia earnings breakout story remains intact.

Market Reaction and AI Stock Moves

Nvidia shares jumped 4.7% in after-hours trading. Other AI stocks followed:

• AMD initially traded higher before pulling back slightly
• Alphabet gained over 3%
• Palantir traded higher before retracing

Traders are now positioning for continuation setups across the AI sector, as the Nvidia earnings breakout provides macro-level confirmation that the AI cycle remains intact.

Trading Insights for NVDA and Related AI Names

📈 Nvidia (NVDA)

• Watch for an Opening Range Breakout above premarket highs
• Gap-and-go potential if volume accelerates during first 15 minutes
• Strong support zones: $178 → $182

📈 AMD (AMD)

• Likely to piggyback off Nvidia momentum
• Fades or reversals at key pivots ($226, $232) could offer intraday scalp setups

📈 Palantir (PLTR)

• Remains a high-beta AI sympathy play
• Look for VWAP reclaim trades on morning weakness

📈 Alphabet (GOOGL)

• Strong response to Nvidia’s results reinforces AI advertising & cloud thesis
• Breaks above $295 could trigger a multi-day continuation move

Bottom Line

This quarter wasn’t just another beat — it was confirmation that AI demand remains extraordinarily strong, GPU supply remains sold out, and hyperscalers are accelerating their infrastructure spending into 2025.

The Nvidia earnings breakout isn’t just about Nvidia — it’s a rising tide for the entire AI ecosystem.

For traders, today’s report offers a clear message: AI momentum trades remain alive, well, and tradable.

Related articles:
Nvidia AI Earnings Outlook Amid Market Volatility – TraderInsight
AI Chip Race: Who Will Dominate the Market? – TraderInsight
Google, Meta, and Microsoft Spend on AI – TraderInsight
Nvidia beat and raise should wow its critics, and the stock soars

U.S. Approves $1B Loan to Restart Three Mile Island as AI Power Needs Surge

The U.S. government has approved a sweeping $1 billion federal loan to Constellation Energy to revive the shuttered Three Mile Island facility—one of the most historic nuclear sites in the world. The Three Mile Island nuclear restart is now a centerpiece of the Trump administration’s strategy to rapidly expand reliable baseload energy to match America’s accelerating artificial intelligence boom.

Three Mile Island nuclear restart

Bringing a Dormant Nuclear Asset Back Online

Three Mile Island, located near Middletown, Pennsylvania, has been largely dormant since its notorious 1979 partial meltdown. The second, undamaged reactor continued operating for decades but was ultimately closed in 2019 due to high operating costs.

Constellation Energy now plans to overhaul and revive that reactor by 2027 at a projected cost of $1.6 billion—partially supported by the federal loan. Under a 20-year agreement, Microsoft will purchase the electricity directly to power its rapidly expanding AI data-center network. Once operational, the Three Mile Island nuclear restart will add roughly 800 megawatts of steady, around-the-clock energy to the U.S. grid.

“We want to get as much reliable electricity on the grid as quickly as possible,”
— Energy Secretary Chris Wright

AI Is Rewriting U.S. Energy Policy

AI-driven power consumption is growing so fast that utilities, regulators, and tech giants are now collaborating on long-term, guaranteed energy supply. Unlike solar and wind, large-scale nuclear provides the 24/7 stability required for model training and inference workloads.

The administration’s broader goal is to quadruple nuclear generation—from today’s 100 gigawatts to 400 gigawatts by 2050. The Three Mile Island nuclear restart is being touted as a template for expediting upgrades and restarts of older nuclear sites with updated regulatory guidance from the Nuclear Regulatory Commission.

Why Nuclear Is Suddenly Back in Favor

For years, nuclear struggled to compete with cheap natural gas and rapidly expanding renewables. But geopolitical instability—especially Russia’s invasion of Ukraine—reshaped global sentiment. France, Japan, and the United Kingdom are all pursuing nuclear expansion plans of their own.

The U.S., meanwhile, faces a surge in energy demand as hyperscalers—Microsoft, Amazon, Google—race to build AI data centers consuming more electricity than entire cities. The Three Mile Island nuclear restart directly addresses this shortfall and signals a shift toward nuclear as a core component of the AI economy.

What Traders Should Watch Now

⚡ Constellation Energy (CEG) – Beneficiary of the Nuclear Revival

• Long-duration contract revenue with Microsoft boosts financial visibility.
• Federal loan support lowers execution risk on the restart timeline.
• CEG remains a strong candidate for trend-following setups on pullbacks.

⚡ Microsoft (MSFT) – Securing Energy for Growth

MSFT is locking in predictable power pricing for two decades, a major advantage as AI workloads scale. Traders should monitor whether reduced energy uncertainty translates into improved AI segment guidance in future earnings.

⚡ Uranium & Nuclear ETFs (URA, NLR)

Sector ETFs often react strongly to nuclear policy announcements. Breakouts above recent highs could offer continuation setups.

⚡ Utility Stocks in High-Growth AI Regions

The Three Mile Island nuclear restart may spark similar deals nationwide. Utilities positioned near major data-center clusters (Northern Virginia, Arizona, Texas, Ohio) could experience re-rating events.

Bottom Line

The Three Mile Island nuclear restart represents one of the most significant intersections yet between AI and U.S. energy policy. With Microsoft now directly influencing nuclear strategy—and the federal government aggressively backing restarts—the return of nuclear is no longer theoretical.

For traders, this marks the beginning of a multi-year theme: the AI-energy complex. Nuclear, utilities, hyperscalers, and infrastructure providers are now tightly intertwined—and ripe for event-driven opportunities.

Read CNBC’s coverage here Trump backs Three Mile Island restart with $1 billion loan to Constellation
Microsoft (MSFT), Constellation Energy (CEG) $1B loan granted to reopen Three Mile Island plant

Boeing Stock Slips Despite Big Dubai Airshow Orders — Here’s What Traders Should Really Watch

Boeing landed major aircraft orders at the Dubai Airshow this week, including new commitments for the 777X and 787 Dreamliner. But the stock still closed lower, a sign that investors are focused on something far more important than order announcements: the Boeing cash flow outlook.

Big Orders, Weak Stock Reaction

Boeing shares dipped again, closing near $189 despite headline wins:

• Gulf Air finalized an order for 15 Dreamliners.
• Emirates added 65 Boeing 777X jets to its massive backlog.

These orders bring Boeing’s 777X backlog to roughly 630 planes. Yet the muted response reflects a market that cares less about future demand and more about execution today — especially the Boeing cash flow outlook.

Execution, Not Demand, Is the Problem

Boeing has more than 6,500 unfilled orders, indicating strong demand. What investors really need is proof that the company can:

• deliver aircraft consistently,
• increase the output of the 737 MAX and 787,
• and strengthen the Boeing cash flow outlook.

The 777X remains a sticking point. First flown in 2020, certification may not arrive until 2027, creating years of cost overruns and delaying cash generation that investors have been waiting for since before the pandemic.

Downgraded Free Cash Flow Estimates

Fresh analysis has slashed the expected 2026 free cash flow from $5 billion to just $2.5 billion. That’s a major reason the stock is down even as new orders roll in. Big commitments don’t help the stock when the Boeing cash flow outlook is deteriorating.

Some analysts—particularly at UBS—still believe Boeing can generate $9 billion in free cash flow in 2027 and up to $18 billion by 2029. But until production stabilizes, confidence remains fragile.

Trading Outlook for Boeing

Short-Term Bearish Setup

• Weak reaction to positive news is a bearish signal.
• Resistance at $195–$200 remains firm.
• A break below $185 could open a slide toward $178–$180.

Short-Term Bullish Trigger

• Any positive update on MAX or 787 production ramp.
• Concrete progress on 777X certification.
• Improved Boeing cash flow outlook guidance.

Swing Trader View (1–3 Months)

Expect volatility around every production headline or FAA update. The stock behaves like a “show me” story — traders react to execution, not promises.

Long-Term Investors

If Boeing stabilizes MAX and 787 output and clears 777X certification hurdles, long-term upside remains substantial. But confirming a stronger Boeing cash flow outlook is the key milestone before institutions begin accumulating again.

Bottom Line

Boeing is winning orders, but that’s not what will move the stock. Traders and investors want sustained production improvements and a repaired Boeing cash flow outlook. Until Boeing delivers that, every positive headline will be overshadowed by cash concerns and certification delays.

Nvidia Slips Ahead of Earnings as AI Sentiment Weakens — What Traders Should Watch

Nvidia stock began Tuesday’s session under pressure once again, falling more than 2% in early trading as Wall Street continued rotating out of mega-cap technology and AI leaders ahead of Wednesday’s earnings. The move followed Monday’s broad tech selloff and came amid rising concerns that the economics of generative AI may not be as strong—or as immediate—as once believed. Redburn and Rothschild & Co. issued fresh downgrades of Microsoft and Amazon, two of Nvidia’s largest customers, citing skepticism around AI monetization. This shift in tone has injected volatility directly into the Nvidia AI earnings outlook.

Nvidia attempted to soften the blow on Tuesday morning by announcing up to $10 billion in new investment in Anthropic. Microsoft will also contribute up to $5 billion, and Anthropic will scale its Claude models on Microsoft cloud infrastructure powered by Nvidia GPUs. The companies emphasized a new collaboration to optimize Anthropic workloads for future Nvidia architectures. While strategically important, the news wasn’t strong enough to fully reverse early selling pressure.

Other chip stocks also declined sharply—AMD fell nearly 6%, Broadcom slipped 1.5%, and the VanEck Semiconductor ETF dropped 2.8%. This widespread weakness underscores the importance of Wednesday’s earnings announcement to Nvidia’s AI earnings outlook.

What Wall Street Expects on Wednesday

Analysts project Nvidia will report:

• Revenue: $54.8 billion
• EPS: $1.23

These expectations remain historically high, but after two consecutive down days, Nvidia now faces a slightly lower hurdle than usual. Still, traders will scrutinize far more than top-line numbers. The Nvidia AI earnings outlook hinges on:

• Competition from AMD, cloud ASICs, and custom hyperscaler silicon
• Chip depreciation cycles are affecting spending timelines
• Management commentary surrounding AI demand durability

Morningstar strategist Dave Sekera notes that traders want clarity on shifting competitive dynamics because Nvidia’s first-mover advantage—while massive—is not permanent.

What Today’s Price Action Means for Traders

Tuesday’s decline wasn’t random—it was a repricing of expectations for the Nvidia AI earnings outlook ahead of a major catalyst. This gives traders several clear setups going into Wednesday.

Day Trading Outlook

Bullish Intraday Scenario

• Holding above $182–184 → VWAP reclaim long setups
• Break above $188–190 → momentum continuation
• Possible short–covering rally into earnings

Bearish Intraday Scenario

• Lose $180 → flush toward $176–178
• Watch sympathy weakness in AMD, AVGO, SMH
• “Sell the rumor” pressure into the close

Swing Trading Outlook (1–5 Days)

Bullish (Post-Earnings Beat)

If Nvidia beats and guides higher, upside targets include:

• $195
• $203
• $210 on a full squeeze

This scenario requires stabilizing margins and improving tone in Nvidia’s AI earnings outlook.

Bearish (Miss or Weak Guidance)

Downside targets include:

• $170–175 primary support
• $165 if AI sector selling accelerates

Bottom Line

Tuesday’s selloff reflected the market adjusting to uncertainty surrounding Nvidia’s AI earnings outlook. With tech downgrades, AI-monetization concerns, and a cautious tone across the sector, Nvidia enters its earnings report facing more pressure—and more opportunity—than at any point in the past year.

The company’s multibillion-dollar investment in Anthropic reinforces its deep position at the core of AI infrastructure. Now, the question is whether earnings can calm concerns about competition, margins, and long-term chip demand. Traders should prepare for volatility—and for the possibility that Wednesday marks the beginning of Nvidia’s next major trend.