Global shares declined on Tuesday as investors grew nervous ahead of Nvidia's earnings, critical for sentiment around soaring AI valuations, which some fear may be entering bubble territory. Investors were also concerned about a weakening U.

Investors are intensely focused on the durability of the AI infrastructure boom and whether hyperscalers can sustain their aggressive pace of capital spending.

Peter Thiel’s hedge fund Thiel Macro LLC sold its stake in Nvidia Corp. during the third quarter, marking yet another retreat from investments in the world’s leading provider of artificial intelligence chips.

Nvidia's earnings report on Wednesday could trigger a $320 billion swing in the chipmaker's market value — the largest post-earnings move ever for the AI giant — as investors seek signals about whether the artificial intelligence boom is accelerating or cooling.

But one major revenue opportunity has eluded Nvidia in recent times, and that's the Chinese market. U.S. export controls have blocked Nvidia's high-powered chips from that market, and China itself has added to the challenge -- China has banned foreign-made chips, according to several press reports.

For Q3, analysts are anticipating adjusted earnings per share (EPS) of $1.26 on revenue of $55.2 billion, according to Bloomberg consensus data. That would represent increases of 55% and 57% increase versus the $0.81 EPS and $35.1 billion the company reported in the same period last year.

The fate of Wall Street's staggering bets on artificial intelligence will rest squarely on Nvidia on Wednesday when the chipmaker reports results, with investors seeking signs that bubble worries are overblown.

SoftBank also disclosed that it sold all of its Nvidia shares during the same quarter for $5.8 billion.

Arm Holdings Plc plans to start incorporating Nvidia Corp.’s NVLink technology into chip designs for AI data centers, tightening the relationship between two influential semiconductor companies.

Nvidia's third-quarter earnings will be the main event, but bellwether retailers will also report. September jobs data will be published on Thursday.

Nvidia previously informed investors to anticipate roughly $54 billion in sales for the third quarter of fiscal year 2026, give or take 2%. The company’s gross margins are expected to be in the mid-70s as its Blackwell AI platform expands among hyperscale clients.