London pre-open: Stocks to gain as investors eye Nvidia results

(Sharecast News) - London stocks were set to rise at the open on Wednesday as investors waded through a raft of corporate news, including results from HSBC and Diageo, and looked ahead to earnings from US tech giant Nvidia.

The FTSE 100 was called to open around 40 points higher.

Nvidia is due to report after the close. Ipek Ozkardeskaya, senior analyst at Swissquote, said fourth-quarter revenue is projected at around $65.6bn to $66.1bn, which would represent nearly 70% year-over-year growth compared with $39.3bn earned in Q4 last year.

"Note that before the AI boom, this company's quarterly revenue was around $6-7bn, and growth is expected to continue," she said.

"Now, all of this sounds great - but investors won't just cheer the headline. Last quarter was a good reminder. Nvidia delivered strong top-line numbers, yet the stock didn't fully ride the wave. Why? Because investors zoomed in on the details - specifically the widening gap between revenue booked and cash actually collected. And that matters in a world of rising leverage and massive AI capex. In this environment, investors don't just want contracts. They want cash in the door.

"So yes - Nvidia has built a track record of meeting and beating expectations in this AI cycle. But this time again, it won't just be about revenue growth or EPS beats. The devil will be in the details - cash flow, receivables, margins and forward guidance. I'm afraid Nvidia alone may not be able to reverse the fears.

"Yes, AI spending remains strong, but investors are pulling back - not from Nvidia, but from its biggest clients. Given that hyperscalers make up almost 50% of Nvidia's client book, the AI stress is likely not over just yet."

On the UK corporate front, HSBC reported better-than-expected annual results despite a 7.4% fall in pre-tax profits due to the adverse impact from legal provisions, organisational simplification and the sale of its French-retained portfolio of loans.

Pre-tax profits at the lender came in at $29.9bn in 2025, beating estimates of $28.86bn. Revenue rose 4% to $68.27 versus company-compiled consensus forecasts of $67.36bn.

Drinks giant Diageo posted a fall in interim sales and halved the dividend after weak trading in North America weighed heavily.

Net sales fell 4% to $10.5bn in the six months to 31 December, or by 2.8% on an organic basis. Adjusted operating profits before one-off items were 2.8% lower, at $3.3bn.

The dividend was cut to 20cents a share, from 40.5cents. Diageo said the reduction would bolster the balance sheet and create more financial flexibility.

Drugmaker GSK said it has agreed to acquire Canadian clinical-stage biopharmaceutical firm 35Pharma for $950m in cash.

GSK said the acquisition includes 35Pharma's HS235, a potential best-in-class investigational medicine that has completed phase I healthy volunteer clinical trials, with studies to start imminently in pulmonary arterial hypertension and pulmonary hypertension due to heart failure with preserved ejection fraction.