According to Fortune, Walmart and Target are both replacing CEOs who started in 2014, with Doug McMillon and Brian Cornell both stepping down in February. Walmart shares soared 300% under McMillon while Target’s gained only 60% under Cornell, with Target reporting a 2.7% sales drop last quarter versus Walmart’s expected 3.8% increase. Interestingly, Cornell is staying on as executive chair with no term limit to oversee his successor, while McMillon is completely stepping away from Walmart’s board by 2026. Nvidia also reported record $57 billion quarterly revenue and suggested its new chips could generate $300 billion next year, while President Trump is considering blocking state AI regulation.
The Walmart-Target divergence
Here’s what’s fascinating about these parallel CEO transitions. Both leaders started in the same year, both are handing off to company lifers, but the outcomes couldn’t be more different. Walmart has become this tech powerhouse that can actually compete with Amazon, while Target has been struggling with everything from merchandise misses to empty shelves to that whole diversity initiative backlash situation.
And the stock performance tells the real story. 300% versus 60%? That’s not even close. Walmart basically crushed it while Target, which was doing great during the pandemic, completely lost its momentum. Now they’re handing over the reins in completely different ways, and Wall Street is clearly more comfortable with Walmart’s approach.
The succession strategy contrast
So Cornell is sticking around as executive chair to “oversee” his successor? That’s… interesting. Basically, he’ll be more powerful than he was as CEO, which seems counterintuitive when the company needs fresh thinking. Meanwhile, McMillon is making a clean break from Walmart entirely by 2026.
Think about what that signals to investors. Walmart’s bench is so deep that they don’t need the outgoing CEO hanging around. Target? They’re basically saying “we need the old boss to keep an eye on the new boss.” It’s no wonder Wall Street wanted an outsider to shake things up at Target instead of this insider-heavy approach.
Nvidia’s AI dominance continues
Meanwhile, Nvidia just keeps printing money. $57 billion in quarterly revenue is absolutely insane, and their projection of $300 billion next year would put them in the Fortune 500 top 10. They’re basically the company that’s actually delivering on all the AI hype while everyone else is just talking about it.
The fact that they’re shrugging off bubble fears while suggesting these massive revenue numbers tells you they see demand continuing strong. And with Trump considering blocking state AI regulations, the regulatory environment might actually get easier for these tech giants. It’s a perfect storm for Nvidia’s continued dominance.
Broader market context
Looking at the bigger picture, we’re seeing this weird divergence in corporate America. You’ve got companies like Walmart that have successfully transformed into tech players, while others like Target are struggling to adapt. You’ve got Nvidia absolutely crushing it in AI while traditional indicators like jobs reports are becoming unreliable due to government shutdowns.
And then there’s the Mexico trade situation – they’re now our top goods buyer for the first time in 30 years, which shows how much global trade patterns are shifting. Basically, everything is in flux right now, from CEO succession plans to international trade to AI regulation. It’s a fascinating time to watch how companies navigate these changes.
