Stocks Dip before Nvidia Releases Quarterly Earnings; AI Stocks under Pressure
Stocks are down for Friday from where they started Thursday, and the market is waiting for what Nvidia will report next week.
Quick overview
- Nvidia is set to release its quarterly earnings report on February 25th, which is expected to significantly impact the stock market.
- U.S. stocks closed lower ahead of the report, with the Dow Jones, Nasdaq, and S&P 500 all experiencing declines.
- Concerns over AI's potential disruption to the job market and rising tensions between the U.S. and Iran have contributed to the downturn in tech and financial stocks.
- Nvidia anticipates a 71% increase in earnings per share and $66 billion in revenue for the fourth quarter, but Wall Street estimates vary widely.
Nvidia (NVDA) will be releasing their quarterly earnings report on February 25th, and it is sure to impact the stock market heavily. U.S stocks closed low on Thursday ahead of that release.
AI stocks are still under severe scrutiny, and investors and analysts alike will be looking at Nvidia’s upcoming earnings report to chart the future of the AI market. Stocks ticked down on Thursday, with the Dow Jones falling 0.54% and the Nasdaq dropping 0.31%. The S&P 500 rounded out the top three indices with a loss of 0.28%.
Financial and tech techs fell throughout the day on Thursday, partly due to continued concern over AI disruption and partly due to rising tensions between the United States and Iran. These stocks could fall further after Nvidia’s quarterly report since the company carries a lot of weight on the stock market.
Nvidia’s Earnings Predictions
Nvidia’s stock price has only climbed 0.8% this year in a sluggish start for not just them but for the wider AI market. During this month’s earnings season, multiple tech stocks in the AI field have reported excellent revenue but large capex costs, and their stocks have suffered as a result.
Nvidia is not just one of the Magnificent Seven stocks that help shift market momentum, but they are also the stock with the highest market cap. Their movements carry weight with the stock indices, affecting 7.8% of the S&P 500 alone.
For the fourth quarter, Nvidia is anticipating an earnings per share increase of 71% and revenue of around $66 billion. However, Wall Street estimates for the company’s earnings report are wide ranging, and Nvidia could surprise shareholders with the numbers they announce next week.
Fed Governor Warns of AI Disrupting Workplaces
AI impact on jobs was one of the areas of concern this week for the Federal Reserve. Fed Governor Michael Barr said that artificial intelligence could seriously disrupt the jobs market, replacing human employees with software. He warned policymakers to be cautious about how they handle the issue so that they do not make rash decisions that could negatively affect jobs in the future.
The disruption that AI could cause has already impacted stock markets, leading to a pullback on tech and financial stocks in recent weeks as industry insiders talk up the potential dangers of widespread AI usage. Tech stocks are also falling due to high capital expenditure costs that appear to be growing in 2026 rather than shrinking.
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