The technology stock trade has stumbled out of the starting block in 2026, stemming from pressure from artificial intelligence disruption fears and the allure of groups that have lagged, but the broader market may struggle to make substantial gains without the heavyweight sector's help.
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Nvidia's earnings report on Wednesday should carry a “quite positive” tone, according to a BNP Paribas analyst. But that's no guarantee of a strong stock reaction.
None of Nvidia's second most advanced AI chips, known as the H200, have been sold to Chinese customers so far, a U.S. Commerce Department official said on Tuesday.
Some traders stand to win (or lose) big after Nvidia reports tomorrow, even if they don't own a single share—or, for that matter, if they don't own any stocks at all.
Last week, Nvidia ( NASDAQ:NVDA | NVDA Price Prediction ) and Meta Platforms ( NASDAQ:META ) expanded their partnership, with Meta committing to millions of Nvidia GPUs for its AI data centers.
Can Nvidia keep the Big AI trade alive?
Subscribers to Chart of the Week received this commentary on Sunday, February 22.
For the past two years, the investment narrative surrounding artificial intelligence (AI) has focused almost exclusively on silicon. Investors have flocked to semiconductor manufacturers like NVIDIA NASDAQ: NVDA and AMD NASDAQ: AMD, driving valuations into the stratosphere.
Here is how Nvidia (NVDA) and IPG Photonics (IPGP) have performed compared to their sector so far this year.
NVIDIA ( NASDAQ:NVDA | NVDA Price Prediction ) reports quarterly earnings after the bell tomorrow, Feb.
Analysts project Q4 revenue of $65.6B–$65.7B and EPS of $1.50–$1.52, with next-quarter guidance (expected at $71.7B) being the primary catalyst for the stock. Markets' focus is primarily on the supply/production timeline of the next-generation Blackwell chips and the potential "transitory" pressure on the 75% adjusted gross margin due to the ramp-up. With a significant influence on global indices and contributing 15% to the total market return over the last year, NVIDIA's results are a barometer for the entire tech sector.