Nvidia Earnings Could Decide the Next Move for US Tech Stocks

Nvidia will report its Q2 FY2027 results after the US market closes on August 26, putting the AI chipmaker back at the center of the stock market.

Wall Street expects another strong quarter, but the bar is already high. Goldman Sachs believes Nvidia could deliver a solid beat and raise its outlook, while warning that strong numbers alone may not be enough to push the stock higher.

That matters well beyond Nvidia.

The company has become one of the biggest drivers of the AI trade, so its earnings could set the tone for the Nasdaq 100 and other US technology indices.

A strong outlook for AI demand could help tech stocks recover after last week's pullback. But if Nvidia beats expectations without delivering a meaningfully stronger outlook, investors may still take profits.

There is another factor to watch: US Treasury yields.

The recent rise in long-term yields has put pressure on technology valuations, particularly as AI companies are committing huge amounts of capital to data centers and infrastructure.

That leaves the Nasdaq facing a simple but important test this week:

Can Nvidia deliver enough growth to outweigh rising yields and already-high expectations?

The answer could set the direction for US tech stocks well beyond Wednesday's session.