Joe Tigay NVIDIA Earnings: Navigating Volatility, Fueling AI’s Future
Market’s Wild Ride This Week
Yesterday, May 27, 2025, rocked the stock market. It ignited broad optimism. The S&P 500 snapped a four-day losing streak. It jumped a strong 2.1%. The Nasdaq Composite surged 2.5%. The Dow Jones Industrial Average gained over 700 points.
President Trump delayed tariffs on EU imports. This pushed back a June 1 deadline. That threat sent jitters last Friday. The market tumbled. Then, clarity and a delay brought a roar back yesterday. These sharp swings highlight market sensitivity. Volatility remains high. Yet, investor appetite for tech growth stays strong.
NVIDIA’s Unwavering Performance
This bullish market sets the stage for NVIDIA’s (NVDA) earnings. They report after market close today. NVIDIA benefited from tech’s April rebound. But the company’s core performance never faltered. They delivered a stellar quarter last time. Yet, market concerns punished the stock. Fears about U.S. export controls hit them. That reaction seems excessive now.
Key Earnings Focus: China & Beyond
Today’s report demands focus on China sales. U.S. chip curbs cost NVIDIA billions. They incurred a $5.5 billion charge. NVIDIA walked away from $15 billion in sales. We watch management commentary closely.
But the story offers another side. We expect news on Middle East revenue streams. NVIDIA secured large deals there. They sell thousands of AI chips. UAE and Saudi Arabia build vast AI infrastructure. These new orders offset Chinese losses.
Google’s AI Fuels Demand
Google’s (GOOGL) recent AI unveilings excite the market. Gemini’s advancements impress everyone. New AI Overviews and generative tools like Veo show real power. This underscores a core truth: AI demand will never end. It requires powerful chips.
As Google pushes AI limits, we see new opportunities. Gemini could create subscription revenue streams. This comes through enhanced Workspace offerings. It also means premium consumer AI features. Increased Google Cloud AI demand adds to it. These all drive chip demand.
Companies Poised to Benefit
A strong NVIDIA earnings report will send positive ripples. Many companies benefit from the AI buildout:
- NBIS (Nebius Group N.V.): An AI infrastructure provider. They adopt NVIDIA’s Blackwell Ultra.
- CEG (Constellation Energy): A nuclear utility. They meet rising AI data center energy demand.
- AVGO (Broadcom): A key custom AI chip supplier. They also provide vital data center networking.
- DLR (Digital Realty Trust) / EQIX (Equinix): Leading data center REITs. They own AI’s physical home.
- ARM (Arm Holdings): Its chip designs form the foundation for custom AI chips. This creates a healthier chip design environment.
Today’s NVIDIA earnings call is more than a report. It serves as a barometer for AI’s accelerating impact. We will watch closely.
