Nvidia to report earnings amid market selloff and rising fears of AI crash

Core Viewpoint - Nvidia's upcoming third-quarter earnings report is critical for assessing the sustainability of high valuations in the AI sector, with analysts and investors closely monitoring the company's performance and guidance [1][2]. Group 1: Company Performance - Nvidia is expected to report earnings of $1.26 per share and overall revenues of $54.9 billion, reflecting a 56% year-over-year increase [5]. - The company is projected to achieve $62.2 billion in revenue for the fourth quarter, with any earnings shortfall potentially leading to a negative market reaction [6]. Group 2: Market Sentiment and Analyst Opinions - Analysts are generally confident that Nvidia will exceed Wall Street expectations, but there is significant concern regarding the demand for AI chips and the company's future market outlook [2][3]. - Major investors, including Thiel Macro and Softbank, have sold off significant stakes in Nvidia, raising fears of a potential AI bubble [3]. - Some analysts express skepticism about Nvidia's long-term growth sustainability, citing potential market corrections and a slowdown in innovation [5].