Tomorrow evening after the US market close, something happens that puts the entire tech world on pause: NVIDIA reports its quarterly earnings. And this time, it's not just traders watching — the entire AI industry is waiting.
The Story Behind It
NVIDIA is the company that builds the chips that power artificial intelligence. ChatGPT, all major AI models, self-driving cars — they all need NVIDIA processors. And demand is so high that the company can barely keep up.
Analysts expect second-quarter revenue of $92 billion. That would be a 95 percent increase year-over-year — nearly doubling in twelve months. For context: most companies are proud of 10 percent growth.
CEO Jensen Huang has already indicated that the order books for 2026 and 2027 combined are worth over a trillion dollars. A trillion. That's more than Spain's entire GDP.
What This Means for You
If you own a tech ETF, a world ETF, or even just a bit of money in stocks — NVIDIA numbers affect you. Why? Because NVIDIA has become so large that it can move the entire market.
In recent quarters, the pattern has been the same: NVIDIA beats expectations, the stock rises, and the entire tech sector follows. Apple, Microsoft, Amazon — they all benefit when NVIDIA shows the AI party is still going.
But: expectations are extremely high this time. Some experts say even good numbers could disappoint if they're not spectacular. That's called "priced for perfection" — when even success is not enough because everyone has already priced it in.
How Pros Are Reacting
Large investors have massively built positions in recent weeks — both long and short. Some are betting on a rally, others are hedging with put options.
The interesting part: nervousness is high. The VIX, often called the "fear index," is low overall — but specifically for NVIDIA options, pros are expecting extreme moves. Some are pricing in swings of plus or minus ten percent within 24 hours.
Big money is waiting. Hedge funds are holding back until the numbers are out. Then decisions will be made within minutes.
First Steps for Beginners
If you're just starting to get interested in the stock market: NVIDIA earnings are a good lesson in why you should never put all your eggs in one basket.
Imagine you had put all your money into NVIDIA stock. Tomorrow evening you could be ten percent richer — or ten percent poorer. That's why experienced investors diversify: world ETF, different sectors, different countries.
I myself have NVIDIA in my portfolio — but only as a small part of my tech allocation, which in turn is only part of my overall portfolio. That way I can follow the story without a single number moving all my money.
If you're just starting out: watch how markets react to NVIDIA tomorrow. Not to trade — but to learn how quickly sentiment can shift.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Past performance is not an indicator of future results.