Wall St Week Ahead: Nvidia earnings could test US market’s AI dreams

Positive updates to Nvidia's corporate outlook could fuel more AI optimism and extend a market rally, said Tom Hainlin of US Bank Wealth Management.

NEW YORK: Next week’s earnings report from chipmaker Nvidia could prove a gut check for one of the market’s hottest names, and for the artificial intelligence fever that has helped power gains for US stocks in recent months.

Excitement over the business potential of AI has boosted Nvidia’s shares by more than 46% since Jan. 1. Its US$570 billion increase in market capitalisation is more than triple the market value of Intel. Shares of Nvidia, whose chips are considered the gold standard in the AI industry, surged nearly 240% in 2023.