<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Computer chipmaker Nvidia is poised to release a quarterly earnings report today that is expected to either deepen </span><a href="https://www.9news.com.au/world/stocks-drop-after-another-jarring-day-as-worries-about-too-high-prices-keep-dogging-nvidia-bitcoin/65543d6c-281a-4e76-9532-b7c08f1d5fd0" rel="" target="_blank" title="a recent downturn in the US stock market"><span>a recent downturn in the US stock market</span></a><span> or prompt a sigh of relief among investors increasingly worried that the world's most valuable company is perched atop an artificial intelligence bubble that's about to burst.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Nvidia's report, due after the US market closes at 8am AEST, has turned into </span><a href="https://www.9news.com.au/finance/australian-share-market-down-after-wall-street-plunge-amid-nvidia-bitcoin-stock-falls/253a958e-15b4-4022-87cc-5bacf79864d6" rel="" target="_blank" title="a pulse check on an AI boom"><span>a pulse check on an AI boom</span></a><span> that began three years ago when OpenAI released ChatGPT.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>That breakthrough transformed Nvidia from a mostly under-the-radar chipmaker — best known for making graphics chips for video games — into an AI bellwether because its unique chipsets have become indispensable for powering the technology underlying the craze.</span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/tropical-cyclone-fina-forms-off-northern-australia/0f75ced2-f1e6-4274-b200-b40b8d939bd0" rel="" target="_blank" title="Cyclone Fina set to make U-turn for NT as category 2 storm bringing destructive wind gusts"><strong><span>Cyclone Fina set to make U-turn for NT as category 2 storm bringing destructive wind gusts</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>As OpenAI and longtime "big tech" powerhouses — such as Microsoft, Google, Amazon and Facebook parent Meta Platforms — buy more and more of Nvidia's chips, its annual revenue has surged from $US27 billion ($41 billion) in 2022 to a projected $US208 billion this year.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>That rapid run-up has fuelled a 10-fold increase in Nvidia's market value, which now stands at $US4.5 trillion, surpassing Apple, Microsoft and Google parent Alphabet, currently valued in the $US3 trillion to $US4 trillion range.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>“Saying this is the most important stock in the world is an understatement,” Jay Woods, chief market strategist of investment bank Freedom Capital Markets.</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/finance/nvidia-earnings-will-shed-a-light-on-whether-big-tech-is-fueling-an-ai-boom-or-bubble/deb139da-4f59-47bb-8905-58b9f42fa8b7" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/cancer-pancreatic-plea-disease-wiped-out-stephs-beloved-family-within-a-year/955a325d-9066-41fb-88b9-b04eb35beac2" rel="" target="_blank" title="'So surreal': Steph lost both parents to this disease a year apart. Survival rates have not changed in years"><strong><span>'So surreal': Steph lost both parents to this disease a year apart. Survival rates have not changed in years</span></strong></a><strong><span></span></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>As the meteoric rise in its market value suggests, Nvidia has made a habit of reassuring investors with quarterly reports peppered with numbers surpassing analyst projections and salted with bullish comments from chief executive Jensen Huang indicating the company remains in the early stages of a growth trajectory likely to last another decade despite challenges such as President Donald Trump's trade war.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>But in the past few weeks, more investors are starting to wonder if the AI craze has been overblown, even as big tech companies such as Alphabet increase their budgets for building more AI factories.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>That's why Nvidia's market value has fallen by more than 10 per cent — a reversal known as a correction in investors' parlance — just three weeks after it became the first company to be valued at $US5 trillion.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/esafety-commissioner-julie-inman-grant-called-to-testify-to-us-congress-by-house-judiciary-committee-chairman-jim-jordan/f11939f1-93fc-44f3-981c-df4cc718553d" rel="" target="_blank" title="eSafety Commissioner called on to testify to US Congress"><strong><span>eSafety Commissioner called on to testify to US Congress</span></strong></a><strong><span></span></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>“Skepticism is the highest now than anytime over the last few years,” said Nancy Tengler, chief executive of money management Laffer Tengler Investments.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Despite the recent worries, it's widely assumed that Nvidia's quarterly numbers will at least mirror the analyst forecasts that steer investor reactions.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The Santa Clara, California, company is expected to earn $US1.26 per share on revenue of $US54.9 billion, which would be a 59 per cent increase from the same time last year.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>But the bar has been raised so high for Nvidia and AI that the company will likely have to deliver even more robust growth to ease the bubble worries.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Investors also are likely to be parsing Huang's remarks about the past quarter and the current market conditions — an assessment that has become akin to the State of the Union for the AI boom.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>ALDI wins Canstar award for Australia's best supermarket meats</span></div></div>