{"id":172436,"date":"2025-11-19T18:56:20","date_gmt":"2025-11-19T18:56:20","guid":{"rendered":"https:\/\/quixnet.net\/wpinstance\/nvidia-reports-earnings-and-one-question-towers-is-the-ai-boom-real-nbc-news\/"},"modified":"2025-11-19T18:56:20","modified_gmt":"2025-11-19T18:56:20","slug":"nvidia-reports-earnings-and-one-question-towers-is-the-ai-boom-real-nbc-news","status":"publish","type":"post","link":"https:\/\/quixnet.net\/wpinstance\/nvidia-reports-earnings-and-one-question-towers-is-the-ai-boom-real-nbc-news\/","title":{"rendered":"Nvidia reports earnings and one question towers: Is the AI boom real? – NBC News"},"content":{"rendered":"

© 2025 NBCNEWS.COM
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The most valuable company in the world will report earnings Wednesday that will help answer a burning question for the U.S. economy: whether the artificial intelligence boom is real.
The company, computer-chip giant Nvidia, has powered much of the boom that has fueled 2025\u2019s record U.S. stock market gains<\/a>. But it\u2019s not just stocks that benefit.
Nvidia\u2019s chips have been the catalysts for a massive build-out of data centers that have supplied a backbone to the U.S. economy amid slowdowns elsewhere. More money is flowing into building data centers than all other manufacturing facility types combined, according to the research group S&P Global<\/a>.
As trading kicked off Wednesday, investors signaled their optimism about Nvidia\u2019s results, sending its shares up as much as 3%.
More broadly, however, stocks have shown signs of wobbling <\/a>lately. The declines in share prices \u2014 led by tech companies \u2014 have sparked debates about whether AI-driven gains are beginning to slow.
This raises a bigger question: how the broader economy will perform if it no longer benefits from all the wealth the AI boom is creating.
The U.S. economy has become \u201chighly dependent upon three basic elements: continued consumption amongst the affluent, AI investments, and asset appreciation,\u201d Bill Mann, chief investment strategist at Motley Fool Asset Management, said in a statement Wednesday.
\u201cThe market downdraft, led by the recent high-flying tech companies, is a recognition that the expectations for AI returns may be overly optimistic,\u201d he said.
Nvidia is at the center of this discussion, as investors have begun to digest the company\u2019s relatively cooler pace of sales growth.
The chipmaker is expected to report a 56% increase in revenues for the August-October quarter. It would be an impressive pace for virtually any other company, but for Nvidia it would represent another step down from the triple-digit gains it has reported in recent quarters.
In October, Nvidia CEO Jensen Huang said that his company has $500 billion in orders for its chips, for 2025 and 2026 combined.
\u201cThis is how much business is on the books. Half a trillion dollars’ worth so far,\u201d Huang said at a conference in Washington, D.C.
Alongside broader concerns about the state of the U.S. economy, stock market momentum has been tripped up by worries about circular dealing among AI\u2019s biggest players<\/a>. This means the same money is being passed back and forth between several companies \u2014 even as each company\u2019s individual value climbs.
Nvidia is a fixture in the kinds of deals that are raising concerns. It recently announced a commitment alongside Microsoft to fund AI software provider Anthropic<\/a> with $10 billion.
This kind of big collaboration news would typically boost the stock prices of all the companies involved. But neither Nvidia\u2019s nor Microsoft\u2019s stock got a boost from the Anthropic announcement.
Analysts with Deutsche Bank said this is a sign of the ongoing investor wariness about deals like this.
\u201cIt goes to show how sentiment has turned more negative in the last few weeks, with the circular AI deals being treated with increasing caution as the conversation around a potential bubble has gathered pace,\u201d they wrote in a note published Wednesday.
The question now is whether the latest market hiccups represent a temporary pullback or the onset of a more permanent state of affairs. Most experts are cautiously optimistic that the market will continue to climb.
\u201cWe think the investment boom has room to run,\u201d Goldman Sachs researchers wrote in a note published Wednesday, adding that the economy writ large has remained resilient, something that should provide ongoing support to stock returns.
Stock \u201cvaluations are certainly stretched, yet they remain below the extremes of the dot-com era,\u201d Seema Shah, chief strategist at Principal Asset Management, wrote in a note published last week. What\u2019s more, many firms\u2019 high stock prices are justified by still-solid earnings growth and robust revenue prospects, she wrote.
Still, \u201csome investor skepticism about the likely return on that investment is healthy, particularly when it is impossible to quantify the scale of productivity improvement to expect,\u201d she wrote.
Rob Wile is a Pulitzer Prize-winning journalist covering breaking business stories for NBCNews.com.
© 2025 NBCUniversal Media, LLC<\/p>\n

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