NEW YORK — A wobble in US technology shares has raised the stakes for Nvidia Corp’s. quarterly results on Wednesday, with earnings from the semiconductor giant posing a crucial test for the scorching AI trade.
The heavyweight tech sector slumped 1.6 percent on the week after a huge run for the group, dragging on key indexes. The sector’s weekly decline moderated on Friday as stocks broadly rallied after comments from Federal Reserve Chair Jerome Powell appeared to pave the way for imminent interest rate cuts.
Fueled by its dominant artificial intelligence (AI) products, Nvidia’s massive share price gains have buoyed both the tech sector and the overall market in recent years. Last month, Nvidia became the first company to top $4 trillion in market value.
Investors are now more “on edge” heading into Nvidia’s results, said Matthew Maley, chief market strategist at Miller Tabak.
“When the group goes down and the most important stock in the group reports earnings, that is going to have a bigger impact than usual,” Maley said.
Nvidia’s stock has climbed more than 30 percent so far in 2025, pushing its gain to over 1,400 percent since October 2022. The California-based company has epitomized the broader AI excitement that has driven up shares of a raft of tech companies and others involved in AI infrastructure such as power generation and cooling systems.
“Nvidia is almost looked at as a proxy to what is happening in artificial intelligence,” said Matt Orton, chief market strategist at Raymond James Investment Management. “There’s definitely a read-through that happens to the broader AI trade, which has really been the main driver of the S&P 500’s return this year.”
