By Carmen Reinicke
Publication Date: 2026-02-25 15:00:00
(Bloomberg) — Nvidia Corp.’s earnings report on Wednesday afternoon comes at a critical time for the US stock market with investors increasingly nervous about the outlook for artificial intelligence.
While most Wall Street pros are anticipating strong results from the chipmaker amid ballooning spending on computing infrastructure, there is less certainty about how its shares — and others — will respond at a time when fears about AI disruption and the staying power of heavy investments are dominating the tape.
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“Even if they have tremendous numbers, we know the markets are really fickle,” said Ken Mahoney, president of Mahoney Asset Management.
After powering the market higher for much of the past few years, Nvidia shares have gone cold in recent months, rising about 5% since the start of the fourth quarter — including a more than 2% intraday gain Wednesday — as investors question the hundreds of billions of dollars customers like Alphabet Inc. and Microsoft Corp. are spending on AI. Meanwhile, investors have been fleeing sectors seen as potentially under threat from AI disruption.
The selloff is weighing on the S&P 500 with shares of members like Intuit Inc., Gartner Inc. and Workday Inc. down more than 40% since the start of the year. A Bloomberg index tracking the Magnificent Seven, which…