NVIDIA lowers EPS forecast
NVIDIA $NVDA (-0,19 %) recently lowered its estimates for S&P 500 earnings from continuing operations for the years 2025 and 2026. These adjustments are not simply number changes, but reflect the real challenges the company expects in the current economic climate. Higher costs and a decline in trade could weigh on profits, which is causing a stir in the industry. Nevertheless, the first quarter figures have exceeded expectations and show annual EPS growth of around 14%. The strategies of companies such as Walmart and Home Depot to deal with the upcoming tariffs are also noteworthy. Walmart plans to pass the tariffs on to customers, which could potentially lead to a decline in revenue. In contrast, Home Depot wants to absorb the costs itself, but this could put pressure on profit margins. EPS for the S&P 500 is forecast at USD 270 for 2025 and USD 300 for 2026, which is a clear reduction in growth forecasts.
Lithium could become scarce in 2030
There are worrying developments in the area of lithium supply in the USA and Europe. A recent study by East China Normal University in collaboration with Sweden's Lund University warns that lithium, a crucial raw material for electric cars, could become severely scarce by 2030. Demand is expected to rise to 792,000 tons, while the EU will only be able to produce 325,000 tons. This discrepancy is alarming, as Europe is heavily dependent on imports, particularly from countries such as Chile, Australia and China. While Germany is actively working on its own lithium extraction projects, a shortage is also predicted in the USA and China. The researchers suggest reducing the use of lithium and developing new battery technologies such as sodium-ion batteries to alleviate the impending shortage. This could not only reduce dependence on lithium, but also secure the future of e-mobility.
Sources:
https://finance.yahoo.com/quote/NVDA/
