Nvidia is due to announce its profit on Wednesday, its first earnings report since a Chinese upstart, DeepSeek, upended the artificial-intelligence industry by saying it has developed a large language model that can compete with big U.S. rivals without having to use the most expensive chips.
That called into question all the spending Wall Street had assumed would go into not only Nvidia’s chips but also the ecosystem that’s built around the AI boom, including electricity to power large data centers.
On Tuesday, some of Wall Street’s brightest stars lost more of their shine after a report said U.S. households are getting more pessimistic about the economy.
But for the first time since June, a measure of consumers’ expectations for the economy in the short term fell below a threshold that usually signals a recession ahead, according to The Conference Board.
Asian shares were mixed on Wednesday, with Chinese markets gaining after Wall Street extended its losses on worries over inflation and tariffs.
