Nvidia is about to release its latest earnings report, and the numbers could shake not just the company’s stock but the entire US market. Over the last two years, the chipmaker has climbed to the very top of global markets, becoming the most valuable company in the world with a market cap of more than $4 trillion.
With the results due on Wednesday, investors will finally get a clearer picture of how the firm is performing while navigating Donald Trump’s trade policies and rising questions about whether artificial intelligence has been oversold.
Why Nvidia Matters So Much
Nvidia makes the graphics processing units (GPUs) that have become the backbone of artificial intelligence. Its flagship Blackwell B200 chip is promoted as the most powerful AI processor available today.
The company’s products are critical to big names like Microsoft, Amazon, Meta, and Alphabet, especially since the AI race picked up pace after the launch of ChatGPT in late 2022. Apart from AI, Nvidia also generates revenue from gaming and data centers.
For the last fiscal year, which ended in January, Nvidia posted revenue of $130.5 billion, showing just how central it has become to the global tech economy.
What Wall Street Wants to See
Analysts will be closely tracking Nvidia’s quarterly revenue. The company’s growth has been staggering, fueled by the surge in demand for AI chips. Between mid-2023 and 2024, Nvidia managed five consecutive quarters of triple-digit revenue growth.
In its last report, the firm announced $44.1 billion in revenue, a 69 percent increase from the year before. For the quarter just ended (Nvidia’s fiscal Q2 2026), the company has forecasted around $45 billion in revenue, with analysts expecting as high as $46 billion. That would still mean more than 50 percent growth compared to last year.
But investors are not just looking for the headline numbers. They are also watching for the impact of recent trade battles. Earlier this year, Trump banned Nvidia from selling its H20 chip to China, a move that Nvidia said would cost about $8 billion. The ban was reversed in August, after the company agreed to share part of its sales with the US government.
Is AI Really Worth the Hype?
Despite all the excitement around AI, some experts believe expectations have gone too far. OpenAI’s CEO Sam Altman recently said he thinks investors are “overexcited” about the technology.
Others compare today’s enthusiasm to the “Nifty Fifty” stocks of the 1970s. Back then, companies like IBM and Xerox were considered unstoppable, but their stocks collapsed when valuations ran too high. The warning is simple: even great companies can be poor investments if the price is inflated.
The Magnificent Seven Question
Alongside Nvidia, six other giants – Alphabet, Amazon, Apple, Meta, Microsoft, and Tesla – have been grouped into what investors call the “Magnificent Seven.” Together, their valuations run into the trillions, powered by AI optimism. But not all have done equally well. Apple and Tesla, for instance, have faced recent struggles.
Big Tech continues to pour money into AI, with Amazon planning to spend $85 billion and Microsoft $100 billion in the coming year. Still, the challenge is proving that such heavy investment will eventually lead to profits.
A recent MIT survey showed that 95 percent of businesses reported no measurable return on their AI spending, despite billions of dollars flowing into the sector. That has fueled doubts about whether the industry is in a bubble.
Why the Market Is Holding Its Breath
Nvidia has become so large that it now makes up almost 8 percent of the S&P 500 index. That means any sharp move in its share price can ripple across the broader market.
In the past, Nvidia’s earnings have caused big swings. When its February report disappointed investors, Nvidia’s stock fell more than 8 percent, dragging the S&P 500 down by 1.6 percent in a single day.
With expectations sky-high, Wednesday’s report could once again set the tone for both the tech sector and the wider US economy.