Shares of major artificial intelligence companies saw a positive shift today, recovering from recent struggles, with the market’s focus squarely on Nvidia’s upcoming earnings report, due after the closing bell.
Given Nvidia’s central role in the AI boom, the company’s financial results, future guidance, and commentary on the broader AI landscape are expected to significantly influence the sector and possibly the wider market as well. As of 12:52 p.m. ET, Meta Platforms (META) saw a 3.5% increase in its stock price, while CrowdStrike (CRWD) and Broadcom (AVGO) experienced even greater gains, trading 5% higher at the same time.
All Eyes on Nvidia
There’s no doubt that investors’ attention is fixed on Nvidia, a leading manufacturer of AI chips. The company is scheduled to release its fiscal year fourth-quarter and full-year earnings after the market closes. Wall Street analysts predict earnings per share of $0.85 and a substantial 72% year-over-year revenue growth, reaching $38.1 billion for the quarter.
However, the focus extends beyond the numbers. Market analysts will be listening closely to CEO Jensen Huang’s insights on several crucial areas shaping the broader AI ecosystem. These include the influence of DeepSeek and its potential impact on capital spending in AI, alongside the projected ease and affordability of replicating large language models in the future.
Analysts are also anticipating questions about the possible impact of the Trump administration’s suggested export control measures on chips and what consequences these might have for Nvidia if they are implemented.
Company-Specific Developments
In other news specific to particular companies, reports have emerged suggesting that Meta might be planning a major data center expansion to accommodate its artificial intelligence initiatives. The project’s cost could exceed $200 billion, according to The Information, which originally reported the news, citing unnamed sources. Despite almost constant announcements regarding large-scale AI infrastructure plans, Meta has reportedly dismissed the reports, calling them “pure speculation.”
In other news, Bank of America analyst Tal Liani reiterated his buy rating for CrowdStrike today and increased his price target to $420. Liani anticipates that the company will either meet or outperform consensus estimates when it reports earnings on March 4. He believes the company’s core business will continue to show strong growth in addition to increased revenue derived from cross-selling and up-selling strategies.
Broadcom also made news, announcing the release of new technology designed to enhance interoperability in AI data centers.
A Crucial Turning Point
The upcoming Nvidia results have the potential to mark a turning point for the AI sector. Following a challenging period in 2025, strong results and guidance from Nvidia, along with optimistic comments from Huang, could help to steer AI stocks back on a positive trajectory. Conversely, disappointing results or comments that concern investors could result in further declines.
While these potential outcomes represent short-term concerns, longer-term issues also affect AI stocks. These include the higher-for-longer rate environment, some concerns about weakening consumer spending, and a potential recession. However, a recession could also trigger further rate cuts.
From an investment perspective, the current valuations of these companies vary. Based on forward earnings, CrowdStrike trades at 90 times, which, while the company appears to have a solid business, may be too high for some investors. Broadcom and Meta, which trade at approximately 34 and 27 times forward earnings estimates, respectively, appear more appealing. Many analysts have highlighted Broadcom’s custom chip business and Meta’s potential to monetize AI.
