Nvidia is set to report quarterly earnings on Wednesday, which may deliver a blow to an already anxious stock market or reignite the AI rally. As the poster child of Wall Street’s AI craze, Nvidia’s results will be closely watched by investors and analysts.
The tech giant has been riding high on its Blackwell platform, with demand outstripping supply, according to executives. However, recent uncertainty over the US economy, politics, and AI investments has raised concerns about investor behavior.
Nvidia’s $3 trillion market capitalization gives it significant influence over the S&P 500, but even this hasn’t been enough to protect its stock from recent downturns. The company’s shares have dipped nearly 7% after its November earnings report, despite the S&P 500 rising on each of those days.
The AI trade has been particularly fragile in recent weeks, with stocks like Palantir, Vistra, and Applovin falling by at least 20% in the last week alone. The impact of Chinese startup DeepSeek’s open-source model, which claimed to match advanced US models at a fraction of the cost, is still unknown.
Investors will be closely watching Nvidia’s sales report, particularly on Blackwell platform sales, as demand is expected to have outstripped supply. However, any deceleration or acceleration in investment should show up in its results. With high expectations and recent disappointment on Wall Street, it remains to be seen whether Nvidia’s earnings report will reignite the AI rally or deliver a blow to an already anxious stock market.
Source: https://www.investopedia.com/everyone-on-wall-street-is-watching-for-nvidias-earnings-heres-why-11686351