Nvidia's earnings this week are being watched closely by Wall Street, but they will also affect billions of people who rely on the company's chips to use apps, devices and online services.
The California-based company, the first to cross the $4 trillion mark in market value, designs the processors that power ChatGPT and TikTok’s recommendation engine. Snapchat’s augmented-reality features also rely on AI models that have been supported by Nvidia technology.
The company is forecast to announce revenue of $45.9 billion for its second fiscal quarter on Wednesday, after the market closes, Reuters reported.
Powering AI
“Nvidia’s products power the AI technology behind many devices and services we use daily,” said Jesse Jarvis, chief executive of data company Kaiko.
If Nvidia's earnings are strong, platforms may accelerate the introduction of smarter recommendations, new creative tools and more advanced filters.
Users could see features including generative video or improved safety moderation reach their apps faster. But if supply remains constrained or costs rise, innovation could slow down and companies may look to recover costs.
That could mean delays in new features, higher subscription costs for AI services such as ChatGPT Plus, or more premium add-ons inside social apps.
The effects extend beyond software. Nvidia chips also power gaming PCs, laptops and cars, meaning shortages or price pressures could filter through to a wide variety of products.
In workplaces, Nvidia-backed AI systems are already being used to handle tasks once performed by people, raising the prospect of greater productivity and increased automation pressure on jobs.
Looking ahead, Mr Jarvis said consumers could expect “faster AI-powered applications, more accessible entry-level tools and the rise of new AI-integrated devices”.
'Golden chips'
Daniel Ives, managing director at Wedbush Securities, called this “a monster week for the AI revolution and tech stocks with Nvidia earnings on deck”. He said demand for Nvidia’s processors continued to outpace supply. “From our Asia field checks, demand to supply is 10:1 for Nvidia's golden chips," he added.
Mr Ives said the coming results could spark another rally in technology stocks. “We believe Nvidia earnings on deck are another positive catalyst for tech stocks and a reminder this is still only the bottom of the second inning in the nine-inning game around building out the AI revolution over the coming years to enterprises/consumers globally," he added.
But Nvidia’s dominance extends well beyond the technology sector, said Josh Gilbert, market analyst at eToro. “In the same way Apple symbolised the smartphone era, Nvidia now defines the AI era,” he said.
He noted that the company’s outsized role, comprising about 8 per cent of the S&P 500 – the largest weighting in history – increased the pressure to deliver.
Even small disappointments, he added, could spark volatility across global markets.
Path to affordability
AI pricing will follow the same trajectory as other breakthrough technology, said Fadi Ghandour, executive chairman of Wamda Group.
“AI, like all other new technologies, will start expensive and will very quickly move to become lower cost until it becomes ubiquitous and available to everyone at affordable prices,” he said.
He referred to Moore’s Law, saying AI could act as an “extension of brain power, multiplying our abilities to solve complex problems and have very complex information available to us instantaneously”.
Mr Jarvis echoed that sentiment, saying that while the cost of using AI is dropping quickly, large enterprises may still face higher overall bills. “The cost of using AI is falling quickly due to innovations, better efficiency and competition, making it easier for smaller businesses and individuals to access powerful tools and solutions,” he added.
Competition is growing from companies such as DeepSeek in China, which recently launched a new model, optimised for Chinese-made chips and designed to offer high performance at lower cost.
Mr Jarvis said competition played a key role in making AI cheaper for users. “New challengers put pricing pressure on incumbents, promote open-source models that reduce licensing costs and design smaller, more efficient systems that require less computing power and energy than the massive models of established firms,” he said.
The Middle East is also increasing investment in the sector, with Saudi Arabia and the UAE building massive AI-driven data centres alongside Nvidia and US hyperscalers.
Analysts say such spending will expand the use of AI in the coming years. “We are still in the early days of the AI revolution as the use cases are just starting to massively expand,” Mr Ives said. This week’s earnings will be “another 'flex the muscles' moment for [Nvidia chief executive] Jensen [Huang] and Nvidia, as well as the AI revolution bull thesis”, he added.
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Trump v Khan
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2017: Trump criticises Khan’s ‘no reason to be alarmed’ response to London Bridge terror attacks
2019: Trump calls Khan a “stone cold loser” before first state visit
2019: Trump tweets about “Khan’s Londonistan”, calling him “a national disgrace”
2022: Khan’s office attributes rise in Islamophobic abuse against the major to hostility stoked during Trump’s presidency
July 2025 During a golfing trip to Scotland, Trump calls Khan “a nasty person”
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
