Concerns about an artificial intelligence (AI) bubble across the U.S. technology sector are simmering ahead of the second-quarter earnings report from Nvidia, to be released after financial markets close on Wednesday.

The maker of processors for data centers and server farms is seen as a bellwether for the AI subsector of the tech industry, which is facing concerns over its long-term profitability after huge investments in the wake of the 2022 release of OpenAI's ChatGPT chatbot.

Traders are bracing for swings upwards of 6 percent, or $260 billion, in the company’s stock value, according to options pricing data, compared to moves of about 3 percent over the past several quarters.

“The big event in corporate earnings will be Nvidia’s results on Wednesday, which come as tech stocks had se

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