Nvidia Earnings Test AI Demand After PCE, GDP
Nvidia earnings will test AI-driven revenue as July PCE stayed elevated and US GDP remained modest, potentially shifting near-term market flows.
KEY TAKEAWAYS
- BEA reported July PCE inflation 3.7% and core PCE 3.3%, both above 2.0% Fed target.
- Q2 real GDP growth was confirmed at a 1.5% annualized rate.
- Nvidia earnings will test AI demand with consensus revenue near $92.2 billion and guidance $91.0 billion ±2%.
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Nvidia Corp.'s (NVDA) earnings, due after the market close on Aug. 26, 2026, will test AI-driven revenue as July personal-consumption-expenditures (PCE) inflation held at 3.7% year-over-year and the Bureau of Economic Analysis (BEA) confirmed second-quarter real GDP growth at a 1.5% annual rate.
Inflation and Growth Data
The BEA released July personal income and outlays data, including PCE inflation, along with its second estimate of second-quarter GDP at 8:30 a.m. ET. Headline and core PCE inflation remained steady year-over-year from June at 3.7% and 3.3%, respectively, both above the Federal Reserve’s 2% target. Monthly headline and core PCE each rose 0.2% in July.
The agency’s second GDP estimate confirmed 1.5% annualized growth for the quarter, unchanged from the advance reading and below the first quarter’s 2.1% pace, maintaining a backdrop of modest economic expansion.
Nvidia Earnings Under Scrutiny
Nvidia was set to report fiscal second-quarter results after the market close, with consensus revenue estimates near $92 billion, nearly double the prior year. The company had guided revenue of $91 billion, plus or minus 2%. Analysts expected adjusted earnings per share around $2.09 on that revenue.
Broad U.S. equity indexes were mostly flat midday as investors awaited the combined macroeconomic data and Nvidia’s report. The quarter is viewed as a key test of whether AI-related spending can sustain momentum in the technology sector amid persistent inflation and slowing growth.
No merger, regulatory approval, or enforcement issues were identified ahead of the earnings release. The results could influence near-term market direction if they shift expectations for AI demand.
