Nvidia Earnings in Focus; SpaceX Eyes Historic IPO | Bloomberg Tech 5/20/2026

High growth expectations with profit-taking risk

Analysts expect 80% revenue growth and 85% EPS growth, yet Nvidia shares historically decline the day after earnings even on strong results as investors trim positions.

Compressed valuation metrics

The stock trades at 24 times forward earnings, below its historical average, as astronomical earnings growth has outpaced the stock price.

China market complications

While U.S. officials approved H200 chip exports, China's government is blocking purchases, creating uncertainty despite Jensen Huang's belief that demand will eventually open the market.

Supply constraints persist

Huang confirmed that demand continues to exceed capacity globally, with networking components presenting potential bottlenecks to AI compute supply.

Record-breaking IPO scale

SpaceX targets a $75 billion raise at a $2 trillion-plus valuation, which would mark the largest IPO in market history.

Banking syndicate structure

Goldman Sachs and Morgan Stanley are expected to lead, but fees may be distributed equally among the top five banks, mirroring the 2014 Alibaba IPO structure.

Cursor acquisition timing

SpaceX plans to acquire the coding startup Cursor for $60 billion within 30 days of the IPO, paying a $10 billion breakup fee if the deal fails.

Strategic integration with xAI

The acquisition aims to combine Cursor's coding capabilities with xAI's compute infrastructure, addressing talent retention challenges while securing critical AI training resources.

Hyper-speed defense unicorn

AMCA reached a $1 billion post-money valuation just 18 months after its November 2024 founding through a $300 million Series B.

Critical supply chain reshoring

The company designs and manufactures previously offshore-dependent components like sensors and capacitors for platforms including the F-35, 737 MAX, and military tanks.

Vertical integration necessity

Due to dwindling domestic suppliers for sensing elements and passive electronics, AMCA is forced to vertically integrate manufacturing processes.

Generational manufacturing opportunity

CEO Jai Malik describes the current environment as the largest gap between U.S. defense needs and production capacity in generations, extending beyond defense into AI infrastructure.