Catenaa, Wednesday, February 25, 2026- Nvidia earnings report on Wednesday afternoon comes at a critical time for the US stock market, with investors increasingly nervous about the outlook for AI.
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.
After powering the market higher for much of the past few years, Nvidia shares have gone cold in recent months, rising just 3.8% since the start of the fourth quarter, as investors question the hundreds of billions of dollars customers like Alphabet and Microsoft 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, Gartner, and Workday down more than 40% since the start of the year.
A Bloomberg index tracking the Magnificent Seven, which also includes Apple, Amazon, Meta Platforms, and Tesla, has dropped 4.7% in 2026.
Nvidia, however, is still the most valuable company in the world with a roughly $4.8 trillion market capitalization as the stock climbs on Wednesday, giving it enormous sway over the S&P 50O Index.
Nvidia’s revenue is expected to jump 68% to $65.9 billion in its fiscal fourth quarter, which ended on January 31.
Adjusted earnings are anticipated to rise 72% to $1.53 a share, according to the average of analyst estimates compiled by Bloomberg.
Another metric investors will be watching closely is gross margin, a measure of profitability that came under pressure last year due to high production costs for Nvidia’s Blackwell chips.
The firm’s adjusted gross margin is anticipated to be 75% in the fourth quarter, the highest in more than a year, and is projected to stay around that level in the current fiscal year.
