Nvidia Earnings Loom Large as Inflation Data Takes Center Stage

Nvidia's earnings will be the highlight of the week for investors as the company reports its results on Wednesday after the bell. The AI trade has been a major driver of Nvidia's stock price, and investors will be looking for updates on AI infrastructure demand, product ramp timing, China exposure, and the economics of the chipmaker's expanding financing partnerships.

Options traders are pricing in a roughly 6% move in Nvidia shares following the report. The results could reverberate across the semiconductor and AI complex, with Marvell Technology (MRVL), Micron (MU), Arm (ARM), and Advanced Micro Devices (AMD) showing some of the closest trading correlations with Nvidia following earnings.

The week will also see a key inflation reading on Wednesday morning, with economists expecting a 3.3% annual increase in the August core PCE price index, the Federal Reserve's preferred inflation gauge. The report takes on added importance following the Fed's decision last month to hold interest rates steady despite three policymakers dissenting in favor of a hike.