The Most Anticipated Earnings Drop of the Quarter

This afternoon U.S. time, Nvidia will publish its quarterly earnings and everyone is holding their breath.

Not because people expect drama (they don’t), but because the mood around AI has shifted, and investors are looking to Nvidia to tell them whether the story still holds.

Tech stocks have stumbled, AI excitement has cooled, and the market suddenly feels unsure of itself. Now everyone is watching Nvidia, the company that has powered the whole AI boom, to figure out what comes next.

Let’s break down why this matters so much.

What’s actually happening on Wednesday?

Nvidia reports earnings for its fiscal Q3. The numbers Wall Street expects are enormous:

• Around 54 billion dollars in revenue
• Earnings up more than 50% year-over-year
• Growth driven almost entirely by data centres and AI demand
• Analysts expect a slight decline from 75% in Q3 last year to 73.6% this quarter

The question is not just “will they hit the numbers?”, but also “can this pace continue?”

After two weeks of market jitters, investors want clarity. Everyone’s looking for Nvidia to either calm nerves or confirm the doubts.

Why does ONE company have this much influence?

Because Nvidia has become the backbone of the entire AI industry.

When Microsoft, Amazon, Google, Meta, OpenAI, or any AI startup builds something, they almost always need Nvidia’s chips.

These chips, called GPUs, are the engines that train and run modern AI.

That means:

• If Nvidia grows, the whole AI ecosystem looks healthy.
• If Nvidia slows, even slightly, people start questioning everything.

This is why Nvidia’s earnings now move the entire market. One company’s results are treated like a diagnosis for the state of AI itself.

But not only that.

Nvidia has become such a massive part of the U.S. stock market. The company now makes up about 7.5% of the entire S&P 500 (the 500 biggest companies in America).

But not only that, Nvidia also has a significant weighting in the MSCI World Index - almost 6% though the exact percentage fluctuates

So when Nvidia reports earnings, it’s not just news about Nvidia.

And because the S&P 500 index and MSCI World Index are the foundation of so many pension funds, index funds, and everyday investment accounts, Nvidia’s earnings ripple across continents.

Quick refresher: What does Nvidia actually do?

Nvidia makes GPUs, processors that can do thousands of calculations at once. These chips were used for video games back in the 90s. Now they matter for everything from translation models to self-driving cars to ChatGPT.

Nvidia’s chips are the reason AI took off so quickly. They’re the physical ingredient behind the hype. That’s why the company isn’t just “another tech stock.”

Are we in an AI bubble?

This is the billion-dollar question.

Some people say yes - the spending is too big, too fast. Tech giants are investing hundreds of billions into AI infrastructure without knowing exactly how profitable it will be. That kind of enthusiasm can turn into a bubble.

Others say this is the early stage of something transformative, like the early internet.

But in the past few weeks, scepticism has grown louder. Softbank sold its entire Nvidia stake.

Even though SoftBank insisted the sale wasn’t anti-Nvidia, just a rebalance to fund other AI plays, it made people wonder: if AI is unstoppable, why walk away now?

What The Market Wants From Wednesday

Investors aren’t just waiting for numbers.

They’re waiting for Jensen Huang’s explanation, the CEO whose vision has defined the AI boom.

What they want to hear:

• AI demand is still accelerating
• Blackwell orders are strong
• Hyperscalers (Microsoft, Amazon, Google) are still spending heavily (although critics argue that they are spending too much into AI without actually seeing return on their investment)
• No cracks are forming in the AI story
• They want to hear the forward guidance and what the future holds

If Nvidia sounds confident, the market will relax. If Nvidia sounds cautious, tech stocks could take another hit.

The Bottom Line

All eyes are on Nvidia’s earnings and Jensen Huang’s words because this week’s report isn’t just about a company. It’s about the narrative driving the entire market.

Nvidia has become the signal investors use to understand whether the AI boom is still powering forward or starting to lose energy.

Its job this week is simple but massive:

To show that the AI story is still expanding. Because right now, the tech market is full of questions.

And on Wednesday, everyone is looking to Nvidia for answers.