Stocks To Watch This Week: Walmart, Cisco, and Applied Materials Under Pressure From AI and Consumer Spending Tests

TLDR

• Last week, the S&P 500 and Nasdaq closed at record highs, with tech and AI stocks leading the charge
• April’s CPI data drops Tuesday and retail sales figures arrive Thursday—both critical for shaping interest rate expectations
• Cisco reports earnings Wednesday, with margin pressure and AI networking demand in the spotlight
• Applied Materials’ earnings will test if the semiconductor rally has outpaced its underlying fundamentals
• On Holding and Under Armour both release results Tuesday, offering insights into consumer spending on premium apparel

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(SeaPRwire) –   This week, investors are keeping an eye on five stocks, each tied to a major trend unfolding in the market right now. From consumer spending to AI infrastructure, the coming days could reveal much about the current state of affairs.

The S&P 500 and Nasdaq Composite ended last week at all-time highs. Tech stocks drove most of this gain, supported by AI demand, stronger chip sales, and falling oil prices. However, several data releases and earnings reports this week could shift the market landscape.

Tuesday brings the April Consumer Price Index report, and Thursday brings April retail sales data. Both will influence investors’ views on interest rates and the strength of the U.S. consumer.

Here’s a closer look at each stock and what to watch for.

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Walmart

Walmart is one of the most closely monitored names this week because it sits at the heart of the consumer spending narrative.

Walmart Inc., WMT

Thursday’s retail sales data will show whether Americans continued spending in April. Consumers held up better than expected when gas prices hit $4.50 in March, but there are signs they’re growing more cautious. Personal spending has slowed, and some shoppers bought cars and appliances early to get ahead of potential price increases.

Walmart serves a wide range of shoppers but is especially key for tracking lower- and middle-income households. Strong retail sales would be a positive signal for the stock, while weak data would raise more concerns about how those consumers are coping with inflation pressure.

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Cisco Systems

Cisco reports its fiscal third-quarter results after the market closes on Wednesday.

Cisco Systems, Inc., CSCO

Investors will focus on revenue growth, profit margins, and demand for AI networking equipment. Last quarter, Cisco beat revenue and earnings estimates, but shares fell due to margin pressure—making margins the top metric to watch this time.

There’s also an AI angle here: companies are increasing spending on data centers and network infrastructure, and Cisco wants to show it can capture some of that demand, just like semiconductor firms have.

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Applied Materials

Applied Materials isn’t as well-known as Nvidia or AMD, but it plays a critical role in the chip supply chain. Its equipment is used by manufacturers building advanced semiconductors.

The company is expected to report earnings this week. Investors will use the results to judge if demand for chip manufacturing equipment is holding strong. Semiconductor stocks have had a robust run driven by AI, memory demand, and data center spending.

A strong report would support that trend, while weak guidance could raise questions about whether the rally has outpaced underlying business fundamentals.

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On Holding

On Holding reports first-quarter results Tuesday before the market opens.

The Swiss sportswear brand has grown quickly, and investors will look at sales growth, margins, and inventory levels. The company recently named its co-founders as co-CEOs, so the earnings call will be watched for signals about what this leadership change means going forward.

On Holding gives investors a window into premium athletic apparel. Strong results would suggest higher-income consumers are still spending freely on branded goods.

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Under Armour

Under Armour reports fiscal fourth-quarter results Tuesday morning.

The company has been working through a turnaround, focusing on cost-cutting and brand rebuilding. Investors will want to see if those efforts are reflected in the numbers. Clothing stores were one of the weaker retail categories last month, making this report a key check on broader apparel demand.

Sales trends, margins, and inventory levels will be the main metrics to track.

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Final Thoughts

This week isn’t just about individual companies—it’s a check on some of the biggest themes driving the market right now.

Inflation data will test if price pressures are still easing. Retail sales will show how the consumer is really doing. Cisco and Applied Materials will give a ground-level view of AI and chip demand. On Holding and Under Armour will reveal whether shoppers are still buying premium clothing.

Each of these reports feeds into the bigger question investors are asking: can the market’s record-setting run hold up once the data comes in?