By Lewis Craiscopef
New York (Reuters) -Wobble in the US Technology ACKS has collected bets for the NVIDIA Corp’s quarterly results on Wednesday, with the profit from the semiconductor giant being a decisive test for the lazy AI trade.
The Benchmark S&P 500 has receded this week from a record levels, dragged more than 3% of the heavyweight technology sector this week after a huge group for the group.
Nourished by their dominant artificial intelligence (AI) products, the mass profits of NVIDIA shares have imposed both the technology sector and the common market in recent years. Last month, Nvidia became the first company to exceed $ 4 trillion market value.
Investors are now more “on the edge” in the results of Nvidia, said Matthew Mali, a major market strategist at Miller Tabak.
“When the group falls even the most important stock in the group reports profits, it will have a more impact than usual,” Mali said.
NVIDIA’s shares have risen about 30% so far in 2025, pushing their profits to over 1400% since October 2022. The California-based company embodies the broader excitement, which caused shares of a number of technology companies and others involved in AI infrastructure, such as energy and cooling systems.
“Nvidia is almost seen as proxy about what is happening in artificial intelligence,” says Matt Orton, a major market strategist at Raymond James Investment Management. “There is definitely a reading that happens with the wider AI trade, which is indeed the main engine to the return of the S&P 500 this year.”
Analysts said the possible reasons for the recent weakness of technological shares include AI warning developments in the industry, including comments from Openai CEO Sam Altman that investors could be overcome for AI.
NVIDIA’s results will close a season of corporate profits from the second quarter of the United States, which largely exceeds expectations and has helped to support shares. The S&P 500 profit is about to rise by 12.9% compared to the annual period, compared to the expected increase by 5.8% on July 1, according to LSEG IBES.
Goldman Sachs strategists have indicated a special profit force for the “magnificent 7” – the group of Megacap companies, which includes NVIDIA, as well as Apple and Microsoft. Including NVIDIA forecasts, the magnificent 7 is about to make an increased profit by 26% compared to 7% for the remaining 493 shares in the index, Goldman strategists said.
NVIDIA is expected to lead to 48% increase in a $ 45.9 billion revenue profit for its second fiscal quarter, according to LSEG.