Navidia earnings after mkt today…….27 Aug 2025 06:51
Can Nvidia results dispel creeping AI doubts?
Questions are arising about when artificial intelligence will deliver its promised returns, meaning tech-concentrated U.S. equity indices sitting near record highs are vulnerable to a correction.
Nvidia's quarterly results this week could therefore potentially be explosive – not just for the company's shares or the tech sector, but for all of Wall Street.
The U.S. chipmaker and global AI leader is the world's most valuable company, with a market cap of $4.4 trillion. That's double the entire value of Germany's benchmark DAX and represents 8% of the S&P 500, the largest share for any single stock in the index's history.
Nvidia is expected to report a 53% increase in revenue to $46.02 billion on Wednesday, according to the mean estimate from 40 analysts, based on LSEG data. That would be higher than the company's own guidance three months ago.
Given Nvidia's unprecedented weight in the U.S. market, its earnings releases have become an event – almost akin to U.S. GDP or inflation statistics. But Wednesday's numbers will be scrutinized particularly closely given the questions being raised about whether we're seeing an AI bubble.
Doubt appears to be creeping in among investors about when and by how much - or even if - the eye-watering investment in AI projects and infrastructure will begin to pay off. And it's not just the bearish, contrarian, 'Magnificent Seven' short sellers peddling this narrative either.
"Are we in a phase where investors as a whole are overexcited about AI? My opinion is yes," said none other than ChatGPT founder Sam Altman earlier this month, according to The Verge.
A recent Massachusetts Institute of Technology study found that 95% of companies are getting zero return on the billions of dollars they have plowed into Generative AI investments. More than 80% of companies have looked into or started using tools like ChatGPT and Copilot, but they only boost individual productivity, not firms' bottom line, the study found. ……….Reuters…
Sign In
Follow the stocks
