Nvidia’s earnings report is no longer just about the chipmaker itself, but also a reflection of the broader stock market and the AI boom. The company’s quarterly financials make up 8% of the S&P 500 Index, making it a key indicator for investors. Analysts expect Nvidia’s Q2 revenue to surge 53% year-over-year, driven by strong demand for its AI-powered chips.
However, uncertainty surrounding China is looming large. The US government has imposed export licenses on Nvidia’s H20 chips, forcing the company to take a $4.5 billion charge in Q1. Despite this, Nvidia CEO Jensen Huang says the company is working on a new product for AI data centers, and production of the H20 chip has started winding down.
The AI bubble is also causing concern among investors. Growing unease that the AI boom is starting to look like a bubble could strike at the heart of Nvidia’s business. If cloud giants slow spending, Nvidia could lose its biggest buyers. Analysts predict a few more years of growth, but warn that at some point, the market may crash.
As Nvidia prepares for its earnings report, investors are bracing for potential movement in the stock price, with trading implying expectations of a 6% change. The company’s shares have surged 35% since May, and analysts expect Nvidia to break out new revenue guidance tied to China restrictions if the Chinese government continues to discourage companies from buying H20 chips.
With all this uncertainty surrounding Nvidia’s earnings report, investors are on edge. Wall Street analysts are eagerly awaiting tomorrow’s numbers, and watch parties are expected to take place as they follow the company’s progress.
Source: https://fortune.com/2025/08/26/nvidia-q2-earnings-preview-china-ai-bubble-trump