With markets jittery after weeks of tech selloffs, Nvidia’s earnings are the next big test for AI sentiment

Fortune

by Sharon Goldman

February 25, 2026

AI-Generated Deep Dive Summary

With tech stocks experiencing a downturn and AI spending under scrutiny, Nvidia’s upcoming quarterly earnings report has become a focal point for investors seeking insights into the sustainability of the AI boom. As the world’s most valuable public company, Nvidia’s performance is seen as a barometer for the broader AI market, with all eyes on whether its revenue growth and profitability continue to justify current valuations. Nvidia has long been at the heart of the AI revolution, leveraging its dominance in GPUs (graphics processing units) and CUDA software platform. These tools are essential for training and running large AI models like ChatGPT and Anthropic’s Claude. While the company remains the industry leader, it faces growing competition from rivals like AMD, which recently inked a multibillion-dollar chip deal with Meta, potentially reducing Nvidia’s market share. Cloud giants such as Amazon, Google, and others are also exploring ways to reduce their reliance on Nvidia chips, even as they remain among its largest customers. The rise of AI-specific startups further complicates the landscape. Companies like SambaNova, Cerebras Systems, and MatX are developing chips tailored for inference tasks—the process of generating outputs from trained AI models—which could challenge Nvidia’s supremacy. Meanwhile, the increasing popularity of AI agents (tools like Anthropic’s Claude Code and OpenAI’s Codex) has intensified demand for more powerful chips capable of handling continuous computation. Investors will closely monitor Nvidia’s earnings to assess whether the company can maintain its growth trajectory while fending off competition. If the results indicate continued strength, it could signal that the AI boom remains intact. Conversely, any signs of slowing revenue or increasing pressure from competitors could send shockwaves through the tech sector, reinforcing concerns about the sustainability of the AI-driven market. Ultimately, Nvidia’s earnings report will not only impact its stock but also serve as a broader referendum on the health of the AI industry. With the sector facing challenges from reduced investor sentiment and shifting dynamics among key

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Originally published on Fortune on 2/25/2026