Next week on the stock market

There’s no getting around it, Aston Martin’s in a tough spot. 2024 brought with it a couple of profit warnings due to delays with its new high-end Valiant models. Now full-year underlying cash profits are set to land in the £270-280mn range, a backward step from the £306mn seen in the prior year.

Aston Martin also had to go cap in hand to debt and equity investors twice last year, seeking additional funds to help keep the wheels turning. But given that free cash flows are expected to remain in negative territory when full-year results are announced next week, it could spell real trouble if demand doesn’t improve soon. In the meantime, we’re hoping to hear the group has credible plans to get costs under control to help stem the financial bleeding.

To make matters worse, British car manufacturers could see President Trump impose a tariff of as high as 25% on British vehicles being imported to the US. This would likely hit Aston Martin hard, so it’s a developing story we’ll be keeping a close eye on

Nvidia wraps up earnings season for the Magnificent 7 with fourth-quarter results next week, and all eyes will be on AI chip demand. Recent signals, including massive investment plans from the big tech giants, suggest Nvidia’s cutting-edge chips remain in hot demand. With AI central to its growth story, the rollout of its latest Blackwell chips will take centre stage where supply constraints held things back a touch in the prior quarter.

Expected revenue growth of 72% highlights Nvidia’s impressive momentum, but margins will also be under the spotlight. Costs tied to Blackwell’s ramp-up could put some pressure on gross margins, with any dip below the guided 73.5% mark likely to ruffle a few feathers. We’ll also be keen to hear more about Nvidia’s push into robotics and self-driving, where CEO Jensen Huang sees a multi-trillion-dollar market emerging.

The tricky macroeconomic environment is one of the reasons for a slowdown in revenue growth, expected around the 8-9% mark for the year, compared to the mid-twenties seen a few years ago. We’ll be looking out for commentary on customers willingness to spend in the current environment, as well as looking to guidance for the new year.

Updates on the rollout of Agentforce will also be crucial. This is Salesforce’s latest product that enables customers to build AI agents that not only assist with answering questions but can also take action. The latest iteration, Agentforce 2.0, launched mid-way through December so we’ll be keen to hear whether it’s driving a material uptick in sales.