Nvidia (NVDA)

The artificial intelligence (AI) company is the number one trending ticker in pre-market trading after analysts said it could reach a $10tn valuation.

Beth Kindig, the lead tech analyst at I/O Fund, is forecasting strong growth and "fireworks" for the stock after its Blackwell advanced chip launch.

Kindig predicted that Nvidia's growth trajectory should become more apparent once Wall Street analysts upwardly revise fiscal estimates for the following year. That should be a "big moment" for Nvidia, followed by the release of shipping volume figures for Blackwell in 2025.

“That’s going to be fireworks, is how I would put it. Absolute, ultimate fireworks for Blackwell will come in first-quarter, with that second-quarter guide,” Kindig said. “Early next year will be fireworks again for Nvidia, and we will be on track for that $10tn.”

These new chips are nearly double the size of their predecessors and pack 2.6 times more transistors, which has led to significant manufacturing challenges and impacted profit margins.

Rolls-Royce (RR.L)

Rolls-Royce shares have staged a recovery in early trading, following Cathay Pacific's announcement that it expects to have its fleet fully operational by the weekend. The Hong Kong-based airline had temporarily grounded its A350 aircraft for inspections after discovering issues with their Rolls-Royce engines.

Cathay Pacific (CPCAF) disclosed that 15 components needed replacement after a "first of its type" engine component failure forced a Zurich-bound flight to turn back on Monday. In response, the airline cancelled at least 34 round-trip flights and initiated precautionary inspections across its 48-strong fleet.

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The airline said three of the 48 Rolls-Royce-powered planes it had inspected had already gone through successful repairs and all of the jets were expected to resume operation by Saturday.

The aerospace engineering company said in a statement it was aware of the incident that caused Cathay Pacific to ground its fleet of Airbus A350 jets. It added it was committed to working closely with Cathay Pacific, Airbus (AIR.PA) and authorities conducting an investigation.

The news follows a significant drop in Rolls-Royce's market value, which saw £2.7bn wiped off on Monday when Cathay warned that "a number of aircraft will be out of service for several days." Rolls-Royce's stock has since rebounded 4.3% in early trading.

“Cathay is only planning for the grounded aircraft to remain out of service for ‘several days,’ suggesting the issue requires a fairly minor and quick fix, and therefore does not call into question the engine’s design or architecture like we saw with the Trent 1000. Indeed, Cathay has noted that spare parts have been secured and repair work is under way,” analysts at Morgan Stanley said.