In addition to the impact on the markets and Nvidia's results, Wall Street will also focus on other tech sector quarterly reports. These include major software companies who are worried that AI will affect their business.
Wednesday's report from semiconductor giant Nvidia, the world's largest company by market capitalization, comes as the heavyweight tech sector and other megacap stocks are off to a shaky start to 2026, weighing on major indices that have hit highs in the past few years. AI “hyperscalers” have announced plans to increase capital spending to build data centers and other infrastructure, often using Nvidia's equipment, setting the stage for the company to deliver strong results, said Marta Norton, chief investment strategist at retirement and wealth services provider Empower.
“Expecting massive results has been a consistent theme for the last few years for Nvidia,” Norton said. “And so it's hard for Nvidia to surprise when everyone expects it to surprise.” The benchmark S&P 500 was up a modest 0.2% last year. But significant changes have taken place beneath the surface. Shares in industries such as software, wealth management and real estate services have been hit on concerns that they are vulnerable to AI disruption.
Nvidia focuses on forecast, CEO comments
Nvidia shares surged more than 1,500% from the end of 2022 to the end of last year. Its stock was up about 0.8% this year, 2026, as of Thursday. Others among the “Magnificent Seven” megacap stocks that fueled the current bull market are underperforming this year. Microsoft shares are down more than 17% in 2026, while Amazon is down 11%.
Nvidia's stock alone could influence major indices; For example, the stock has a 7.8% weighting in the S&P 500.
For its fiscal fourth quarter, the company is expected to report a 71% increase in earnings per share on revenue of $65.9 billion, according to LSEG. For its upcoming fiscal year, analysts forecast it will earn an average of $7.76 per share, which is 66% higher. But the range in estimates among analysts is “significant,” said Melissa Otto, head of research at S&P Global Visible Alpha. According to LSEG data, the lowest EPS for the fiscal year is $6.28, while the high-end estimate is $9.68. “If the bullishness is true, the stock probably doesn't look too expensive,” Otto said. “If the bears are right…it's not that cheap.” The comments by CEO Jensen Huang on Nvidia's quarterly conference call could have broader AI industry implications, including for hyperscalers whose shares are pressured by concerns about a lack of returns on capital expenditures.
“Jensen has to come out and show its confidence in its clients,” said Nick Giorgi, chief equity strategist at Alpine Macro. “The fact that up to this point, Nvidia has been a cheerleader for its biggest customers is really what you need as an investor in this entire ecosystem.”
Software report, State of the Union also on tap
Reports from major software players Salesforce and Intuit will be more important than usual given the consequences of AI in the industry. The S&P 500 Software and Services index is down nearly 20% so far this year.
“Next week is going to be very important for software,” said King Lip, chief strategist at BakerAvenue Wealth Management. While overall sales across the group appear to be “extreme,” Lipp said, “I think there are some software names that … have to find a way to adapt and innovate.”
AI infrastructure players Dell and CoreWave will also report earnings in the coming week. In addition to tech, retailers Home Depot and Lowe's have results coming as fourth-quarter earnings season approaches. Investors will also evaluate President Donald Trump's State of the Union speech on Tuesday.
While the tech sector has struggled, the index has been supported by market movements in sectors such as energy, industrials and consumer staples.
“It's kind of a confusing market,” Norton said. “Whatever worked in 2025 is now going to be difficult in 2026. And whatever was left behind in 2025 is working in 2026.”