Nvidia Earnings: AI's Next Big Test Looms

Investors are turning their attention to the upcoming financial results from artificial intelligence bellwether Nvidia Corp. These reports are seen as critical for steadying a U.S. stock market that has experienced significant AI-related volatility. The tech sector, including key software companies, is facing concerns about AI potentially disrupting their business models.

Nvidia, the world's largest company by market capitalization, is set to release its fiscal fourth-quarter earnings on Wednesday. The company's performance is closely watched as other megacap tech stocks have had a shaky start to 2026. Nvidia's shares have experienced substantial growth since late 2022, and its stock weighting in the S&P 500 is significant.

Analysts anticipate strong earnings for Nvidia, with expectations of a 71% rise in earnings per share on revenue of $65.9 billion for the fiscal fourth quarter. However, the range of estimates for the coming fiscal year is considerable, indicating potential uncertainty. Chief Executive Jensen Huang's comments on the conference call could have broad implications for the AI industry, particularly for hyperscalers investing heavily in infrastructure.

Beyond Nvidia, other significant tech companies like Salesforce and Intuit are also releasing their quarterly reports. The software and services index has seen a notable decline year-to-date, making these reports particularly important for assessing the sector's resilience and adaptation to AI advancements. Retailers Home Depot and Lowe's will also report as the earnings season concludes.