Nvidia (NVDA.US) will not announce its performance until next month, but the performance of its largest customer, a chip manufacturer, announced this week, will set the tone for its stock price. Due to the optimistic sentiment towards the AI boom, the company's stock price is currently close to its historical high.

Zhixin Finance App noted that Microsoft (MSFT.US), Alphabet (GOOGL.US), Amazon (AMZN.US), and Meta (META.US) will all announce their financial reports in the next few days. Traders will closely monitor their capital expenditures to gauge demand for Nvidia chips. Nvidia's chips are highly praised for AI computing. Data shows that this business accounts for over 40% of Nvidia's revenue in the second quarter.

Wall Street expects that these four tech giants will announce record-breaking capital expenditures, but any disappointment about the pace of spending will impact Nvidia's stock price. Nvidia's stock price has nearly doubled this year, with its market cap increasing by over 2 trillion US dollars. This could be a crucial moment for the entire stock market. Nvidia is the largest contributor to the S&P 500 index's rise this year, accounting for about a quarter of the index's 22% increase.

Dave Mazza, CEO of Roundhill Investments, said: "If these companies publicly indicate that capital expenditures are increasing, even if only slightly, Nvidia really needs to do so to maintain this momentum. If any unfavorable factors emerge, you will see a significant drop in the stock price."

According to the average estimate of analysts compiled by Bloomberg, the four tech giants are expected to have a record-breaking total capital expenditure of $56 billion in the third quarter. Most of this expenditure will be used for Nvidia and other AI-related device manufacturers, with further increases expected in the coming quarters.

All signs indicate that spending on artificial intelligence will continue to be strong. From chip equipment manufacturers ASML Holding (ASML.US) to Taiwan Semiconductor (TSM.US), artificial intelligence has been a major highlight of this earnings season.

This backdrop has driven up Nvidia's stock price, while CEO Huang Renxun also confirmed that production of its new Blackwell chip is proceeding smoothly with strong demand. Nvidia is the biggest beneficiary of the significant investment in artificial intelligence computing devices. The stock hit a historical high last week with a market cap of around 3.5 trillion USD, slightly below Apple (AAPL.US), which remains the world's most valuable company.

It is certain that people are worried about the investments of large tech companies in artificial intelligence, as investors believe that the billions of dollars these companies invest produce relatively little revenue. Therefore, this will be another focus when these companies announce earnings this week.

Paul Marino, Chief Revenue Officer of Themes ETFs, said: "You have to walk the fine line with investments" so that investors understand that you "have not gone too far".

According to the average forecast of analysts compiled by Bloomberg, Nvidia's revenue is expected to more than double this year, reaching 125.6 billion USD. Next year, in the fiscal year 2026 for the chip manufacturer, sales are expected to grow by 44%, reaching 181 billion USD.

Of course, other companies benefiting from high artificial intelligence spending include Broadcom, super micro computers, and Dell Technologies.