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Nvidia Earnings This Week Will Test the AI Rally

The company’s August 26 report could reveal how much cloud giants are spending on AI infrastructure and that outcome will shape market sentiment for tech stocks.

Overview

  • Markets entered the week cautiously on Monday as investors trimmed exposure to semiconductor and tech names and major chip ETFs fell, reflecting positioning ahead of Nvidia’s report.
  • Nvidia will report fiscal Q2 results after the market close on Wednesday, August 26, with analysts forecasting roughly $92 billion in revenue and about $2.09 in adjusted EPS.
  • A fresh wave of geopolitical and trade shocks has added pressure on sentiment, including the U.S. imposing 50% tariffs on about $20 billion of Canadian goods and Canada’s pledge to retaliate starting September 8.
  • Policymakers and bond markets are adding another layer of risk as 10‑year Treasury yields sit near 4.7% and Federal Reserve Chair Kevin Warsh’s Jackson Hole address is expected to influence yields and risk appetite.
  • Treasury Secretary Scott Bessent is set to detail new sanctions targeting Iran this week, a development that together with higher oil prices could raise inflation concerns and affect corporate spending on AI infrastructure.