US stocks edge lower as investors await Nvidia earnings

Nvidia (NVDA) is set to report fiscal Q2 2027 earnings on August 26, 2026. Analysts expect $92.07B revenue and $2.09 EPS, with guidance being the key focus. Nvidia's stock is heavily weighted in major index funds, making its performance impactful for many investors. Analysts' revenue estimates range from $94B to $95B for Q2 and $107B to $108B for Q3. China revenue and AI financing are also key topics.

Nvidia (NVDA) is set to report fiscal second-quarter earnings on Aug. 26, with options traders pricing in a 5.4% move, equating to a $280 billion market value swing. The company reported record fiscal first-quarter revenue of $81.6 billion, with data-center revenue at $75.2 billion. Analysts expect second-quarter revenue of about $92.18 billion. Nvidia's results are significant due to its large weighting in key market indices and its role as a bellwether for AI spending.

NVIDIA (NVDA) partnered with six financial firms, including Blackstone (BX), to launch 'compute financing platforms' aiming to raise over $500 billion for AI infrastructure. NVIDIA may backstop 25% of deals. Blackstone's president sees AI compute as a financeable asset class. NVIDIA shares fell after the announcement, erasing $70 billion in market value, amid skepticism about AI spending.

Nvidia presented the Groq 3 LPX architecture at Hot Chips 2026, showcasing its first third-party benchmark. The LP30-based rack, already in production, achieved 3,431 tokens per second on a 100K-context Gemma 4 31B workload. Nvidia acquired Groq's technology for $20 billion in 2025, integrating it into its product lineup.

US stock futures were flat Wednesday, with S&P 500 and Nasdaq-100 futures slightly down, as markets awaited Nvidia's earnings report and assessed the latest PCE inflation data. The core PCE index rose 3.3% in July, meeting expectations. Investors are also watching for Fed Chair Kevin Warsh's speech at the Jackson Hole gathering. Abercrombie & Fitch raised its guidance, boosting its shares 13%.

Taiwanese prosecutors indicted an Nvidia manager for allegedly smuggling AI chips to China via Japan and Indonesia, evading U.S. trade restrictions. Nvidia's CEO denies evidence of such activity, but U.S. officials claim billions in Nvidia hardware entered China. According to Bloomberg, the case involves Nvidia Hong Kong Holdings Ltd.'s Taiwan branch.