While the AI trade has been unambiguously positive for U.S. stocks, investors dumped tech holdings last week as “skepticism about the AI theme, which has powered the mega caps, returned in force,” according to RBC’s Calvasina.

Will a 53% Sales Surge Trigger a Collapse? Nvidia (NASDAQ:NVDA) has been the linchpin of the artificial intelligence (AI) revolution, with its stock skyrocketing over 1,300% in five years, far outpacing the S&P 500’s 90% return.

The market’s focus is locked on two things: NVIDIA earnings and inflation data. Recent warnings from SMCI, CoreWeave, and Dell about weak AI-related demand suggest NVIDIA’s results may fall short of sky-high expectations. That’s a major risk—not just for NVIDIA, but for the entire market rally built on AI momentum.