Nvidia Earnings: What to Expect and Market Impact

Nvidia Earnings: The Market Awaits

Updated: February 25, 2026 at 9:55 AM EST

Published: February 25, 2026 at 6:20 AM EST

NEW YORK (AP) – U.S. stocks are showing modest gains on Wednesday as investors keenly await Nvidia’s fourth-quarter 2025 earnings report, due after market close. The report is expected to be a major market mover, offering a crucial snapshot of the health of the artificial intelligence (AI) sector.

Market Sentiment and Recent Trends

The S&P 500 is up 0.5% in early trading, reflecting a stabilization after a volatile week. Investors have been actively assessing which companies will thrive and which will struggle in the rapidly evolving AI landscape. The Dow Jones Industrial Average has risen 159 points, or 0.3%, while the Nasdaq composite is 0.7% higher as of 9:35 a.m. Eastern time.

Nvidia: The AI Epicenter

Nvidia’s chips are at the heart of the current AI boom, and the company has become the most valuable and influential stock in the U.S. market. Analysts are predicting another exceptionally strong report, forecasting a nearly 70% surge in profit compared to the same period last year, reaching US$37.52 billion. This translates to an impressive average of over US$400 million in profit per day during the quarter ending January 25th.

A Bellwether for the Market

Nvidia’s earnings reports have become a key indicator of overall market health. The company’s size and the pervasive influence of AI mean that its performance significantly impacts market trends. In recent years, the AI frenzy fueled record-breaking stock market rallies, driven by expectations of increased productivity and higher corporate profits.

Growing Concerns and Investment Risks

However, recent concerns have emerged regarding the sustainability of AI-related investments. Questions are being raised about whether companies like Alphabet and Amazon can recoup their substantial investments in Nvidia’s chips and related infrastructure through future productivity gains. A potential pullback in spending could directly impact Nvidia’s revenue.

Investors are also focusing on companies and industries potentially vulnerable to disruption from AI-powered competitors. This has led to sharp sell-offs in sectors perceived as being at risk, including software, trucking logistics, and even legal services.

A Balanced Perspective

“While those concerns are real, we believe investors would be wise to balance them out with offsetting trends that may be underappreciated in the current wall of worry headline cycle,” says Darrell Cronk, chief investment officer for Wealth & Investment Management at Wells Fargo. He points to the strong profit growth reported by large U.S. companies as a positive sign.

Positive Earnings Reports Offset Concerns

Several companies have reported strong earnings, bolstering confidence in certain segments of the U.S. stock market. Cava Group, a fast-casual Mediterranean restaurant chain, saw its stock jump 18.6% after exceeding analysts’ expectations for both profit and revenue. The company’s annual revenue surpassed US$1 billion for the first time, representing a 22.5% increase year-over-year. Axon Enterprise, a provider of Tasers and body cameras with AI-powered voice assistants, also reported better-than-expected results, with a 16.5% increase in its stock price. These gains helped offset a 14.2% drop for First Solar, which reported weaker profits.

Global Market Performance

International stock markets also showed positive momentum, with indexes rising across much of Europe and Asia. Japan’s Nikkei 225 rose 2.2%, and South Korea’s Kospi gained 1.9%.

Bond Market Update

The yield on the 10-year Treasury edged up to 4.05% from 4.04% late Tuesday.