Nvidia, a leading chip manufacturer, is set to release its earnings report on Wednesday. This report will provide insights into the current state of the artificial intelligence (AI) industry, which has significantly contributed to stock market growth and economic expansion in recent years. The California-based company, valued at $4 trillion, has experienced rapid growth since the AI boom began with the launch of OpenAI’s ChatGPT in 2022. Over the past two years, Nvidia's stock price has surged nearly 700%.

Analysts predict that Nvidia will report $46.2 billion in revenue for the three months ending in June, reflecting a 53% increase from the same period last year. However, this growth is notably lower than the 122% revenue spike the company experienced in the same quarter a year ago.

Despite this continued growth, Nvidia faces new challenges. Earlier this year, President Donald Trump imposed a ban on chip sales to China, which was lifted in July. Following this, an agreement was reached allowing Nvidia to sell chips in China, provided the company pays 15% of the revenue from these exports to the U.S. Trump discussed this agreement at the White House, stating, "I said, 'If I’m going to do that, I want you to pay us as a country something, because I’m giving you a release.'"

In May, Nvidia projected an $8 billion loss due to restrictions on chip exports. Recently, some experts have raised concerns about a potential AI bubble, questioning the sustainability of the sector's rapid growth. Torsten Sløk, chief economist at Apollo, suggested that the current AI bubble could surpass the dot-com bubble of the 1990s, indicating that leading firms may be overvalued.

OpenAI CEO Sam Altman also expressed concerns about the AI industry, stating, "Are we in a phase where investors as a whole are overexcited about AI? My opinion is yes. Is AI the most important thing to happen in a very long time? My opinion is also yes."

Despite these warnings, the AI sector continues to be a bright spot for the U.S. economy. According to Pantheon Macroeconomics, AI-related spending contributed a 0.5 percentage point increase to annualized gross domestic product growth in the first half of 2025.