By Shashwat Chauhan
(Reuters) – Artificial intelligence-linked shares fell on Tuesday, in lead-up to AI bellwether Nvidia’s quarterly earnings, which could offer clarity on demand and justify the sector’s lofty valuations.
Technology stocks globally sold off this week after a TD Cowen analyst note said Microsoft has canceled leases for sizeable data center capacity in the U.S., with at least two private data-center operators.
AI-darling Nvidia dropped 2.1% ahead of its highly anticipated quarterly earnings on Wednesday, where investors will focus on demand for its pricey AI chips after low-cost AI models from China’s DeepSeek rattled the industry.
“It must be noted that such lulls are not uncommon, especially ahead of a set of results, but bulls of US equities more generally will be looking to Nvidia for reassurance,” AJ Bell’s investment director Russ Mould said in a note.
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