Nvidia Earnings Could Steady Markets Amid AI Stock Concerns

Wall Street awaits Nvidia's quarterly results this week as AI-related fears shake the stock market. The semiconductor giant's performance could influence major indexes, while software companies face pressure from concerns about AI disruption.

Market watchers are looking ahead to earnings from artificial intelligence leader Nvidia Corporation next week, hoping the results will help stabilize U.S. stock markets that have been shaken by AI-related concerns and are processing a recent Supreme Court decision overturning President Donald Trump’s broad trade tariffs.

The Supreme Court’s Friday decision to strike down Trump’s tariffs initially boosted stocks and Treasury yields, but investors remain uncertain about what alternative trade measures Trump might implement and how the government will handle litigation and refunds.

Along with this market uncertainty and Nvidia’s upcoming report, Wall Street is paying close attention to quarterly earnings from other technology companies, particularly software firms facing threats from concerns that artificial intelligence could disrupt their operations.

The semiconductor powerhouse Nvidia, currently the world’s most valuable company by market value, will release its report on Wednesday. This comes as major technology stocks and other large-cap companies have started 2026 on weak footing, dragging down the major indexes they’ve helped drive higher in recent years.

Companies known as AI “hyperscalers” have revealed plans to increase capital expenditures for data center construction and other infrastructure projects, which frequently rely on Nvidia’s products, positioning the company for potentially strong financial results, according to Marta Norton, chief investment strategist at retirement and wealth services provider Empower.

“The expectation for outsized results for Nvidia has been a persistent theme over the past few years,” Norton said. “And so it’s hard for Nvidia to surprise when everyone expects it to surprise.”

The S&P 500 benchmark index shows a modest 0.2% gain for the year so far. However, significant volatility exists beneath the surface, with shares in sectors like software, wealth management, and real estate services taking heavy losses due to fears they could be vulnerable to AI disruption.

NVIDIA ANALYSTS WATCH GUIDANCE AND CEO REMARKS

Nvidia’s stock price jumped more than 1,500% from late 2022 through the end of last year. In 2026, the stock has gained approximately 0.8% through Thursday. Other members of the “Magnificent Seven” group of megacap stocks that have powered the current bull market have performed worse this year, with Microsoft shares falling more than 17% in 2026 and Amazon declining 11%.

Nvidia’s stock alone carries enough weight to move major indexes, holding a 7.8% position in the S&P 500.

For its fiscal fourth quarter, analysts expect the company to report a 71% increase in earnings per share alongside revenue of $65.9 billion, based on LSEG data. For the upcoming fiscal year, analysts predict average earnings of $7.76 per share, representing a 66% increase. However, the range of analyst estimates is “significant,” noted Melissa Otto, head of research at S&P Global Visible Alpha. The lowest fiscal year earnings estimate stands at $6.28 per share while the highest reaches $9.68, according to LSEG information.

“If the bulls are right, then the stock is looking probably not too expensive,” Otto said. “If the bears are right…it’s not that cheap.”

Remarks from Nvidia CEO Jensen Huang during the quarterly conference call could have wide-reaching implications for the AI industry, including for hyperscaler companies whose stock prices have faced pressure over concerns about insufficient returns on capital investments.

“Jensen has to come out and show his confidence in his own customers,” said Nick Giorgi, chief equity strategist at Alpine Macro. “The fact that to this point, Nvidia has been a cheerleader for their biggest customers is actually what you should want as an investor in this whole ecosystem.”

SOFTWARE EARNINGS AND STATE OF THE UNION ADDRESS SCHEDULED

Quarterly reports from major software companies Salesforce and Intuit will carry more weight than typical, given the AI-related selloff affecting the industry. The S&P 500 software and services index has dropped approximately 20% year-to-date.

“Next week is going to be pretty important for software,” said King Lip, chief strategist at BakerAvenue Wealth Management. While the broad selling in the sector appears “overdone,” Lip noted, “I think there are some software names that are … going to have to find a way to adapt and innovate.”

AI infrastructure companies Dell and CoreWeave will also report earnings in the upcoming week.

Beyond technology, retailers Home Depot and Lowe’s are scheduled to release results as the fourth-quarter earnings season concludes. Investors will also assess President Donald Trump’s State of the Union address on Tuesday.

Despite technology sector struggles, indexes have received support from a market shift toward sectors including energy, industrials, and consumer staples.

“It’s kind of a perplexing market,” Norton said. “Everything that worked in 2025 is now having a hard 2026. And what was left behind in 2025 is working in 2026.”