Although the stock market week is shorter due to the Memorial Day holiday in the U.S., that doesn't mean markets will be any less volatile. In addition to possible surprises on the tariff front — not necessarily positive — several Federal Reserve officials are scheduled to speak throughout the week. But Nvidia's quarterly earnings report on Wednesday could be the main event for the S&P 500 index and Nasdaq.      

Before we discuss what to expect from Nvidia, it is worth remembering how some of the other “Magnificent Seven” have performed. Starting with Apple, the company posted solid results despite concerns about consumer spending and trade tensions. Profits were up 8% over last year, and revenue was up 5%. However, the good news was offset by a 2% drop in iPhone sales in China and higher costs from tariffs.        

Amazon also reported better-than-expected figures: revenue was up 9% year-on-year, and net income rose to $1.59 per share, up from $0.98 a year ago. Even so, the market reacted cautiously. Shares continued to fall as investors were disappointed by Amazon's operating revenue guidance (between $13 billion and $17.5 billion), which fell short of the consensus $17.64 billion, and by the slowdown in AWS growth.     

Microsoft, meanwhile, delivered a solid earnings report that sent its shares sharply higher. As for what investors liked most, revenue came in at $70.1 billion, up 13% year-over-year, beating the consensus of $68.5 billion. Results were driven by steady demand for cloud services and AI integration. Investors didn't even flinch at the increase in capital expenditures tied to the company's AI investments.        

What to expect from Nvidia's quarterly report?     

Let's start with the numbers. In its fiscal year 2025, Nvidia posted revenue of $130.5 billion, up 114% from the previous year. Net income was up 80% year-on-year, to $22.1 billion, and EPS were $0.89, beating the forecast of $0.84. This was boosted by Increased demand for its new Blackwell artificial intelligence accelerators. As for the revenue growth slowing down, this is mainly due to comparisons to an unusually strong base.      

As of today, Nvidia stock price is trading at $131, reflecting investor optimism ahead of the earnings release and sustained enthusiasm around AI technologies.    

For the first quarter of fiscal 2026, Nvidia has forecast revenue of $43 billion, up 65% from the same period last year. As for the Deepseek revolution, the company's CEO has stated that he does not believe it will significantly threaten Nvidia's dominance or greatly affect its revenue. In general, given that Nvidia is usually conservative in its forecasts, it is not out of the question that it will again exceed expectations. 

Still, there are risks. One major red flag is that Nvidia is rapidly losing access to the Chinese market due to U.S. restrictions on the export of advanced chips. In April, reports emerged that the company was preparing to write off $5.5 billion of its H20 chips intended initially for Chinese customers. Some estimates suggest that Nvidia could lose as much as $18 billion in annual revenue due to this market loss.