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The stock market has taken another beating this week, continuing a weeks-long tech selloff<\/a> that ignited over fears of a growing AI bubble.<\/p>\n The S&P 500 is down almost 3.5 percent over the last five days alone. The Dow Jones Industrial Average has slid more than a full percent on Tuesday alone.<\/p>\n Looming over it all is AI chipmaker Nvidia\u2019s Wednesday earnings call \u2014 results that could send ripples through rattled markets, for good or ill.<\/p>\n Many AI companies have a problem, in the form of an astronomical gap<\/a> between sky-high valuations and relatively meager revenues. In a sense, Nvidia is more grounded: it builds the physical chips that those companies use to power their AI models, meaning that if there\u2019s an AI gold rush, it\u2019s selling shovels<\/a>.<\/p>\n That\u2019s worked out well for Nvidia, which hit an unprecedented $5 trillion valuation last month. But it also means that if Nvidia is in trouble, the rest of the AI industry is also in deep trouble \u2014 and, as if those stakes weren\u2019t high enough, the untold tens of billions of dollars being poured into data center buildouts are increasingly propping up the remainder of the US economy, meaning that if Nvidia starts to falter, virtually everyone else could be negatively affected.<\/p>\n Essentially, many of the world\u2019s most powerful business leaders are going all-in on AI \u2014 while critics say it\u2019s a house of cards that could come down if one load-bearing piece falls out. <\/p>\n The economic underpinnings remain largely theoretical. Despite immense enthusiasm, there still isn\u2019t a \u201cclear financial model for profitable AI,\u201d as the Wall Street Journal noted<\/a> last week, even as the \u201cMagnificent Seven\u201d \u2014 the tech megacorporations Nvidia, Microsoft, Apple, Alphabet, Amazon, Meta Platforms, and Tesla, all heavily invested in AI \u2014 represent a whopping 35 percent of the entire S&P 500<\/a> index.<\/p>\n Now, the market clearly has jitters. Nvidia alone, which should be the most secure in the AI industry, has lost hundreds of millions in market cap over the last week. The company\u2019s shares are down over seven percent in the past five days and more than three percent on Tuesday alone, indicating a nervous market<\/a> ahead of Wednesday\u2019s call.<\/p>\n Economic uncertainty is already putting markets on edge, with long-awaited economic data being delayed by the recent US government shutdown. On Thursday, the Bureau of Labor Statistics is set to release its September jobs report, Yahoo Finance reports<\/a> \u2014 which could be good, but could also be very bad.<\/p>\n \u201cThe absence of timely official numbers left the markets and the Fed operating in a data fog, forced to scour alternate sources to gauge the underlying outlook,\u201d Bank of America economist Shruti Mishra in a note, as quoted by CNBC<\/a>. \u201cWith the shutdown resolved, all eyes will now be on the incoming data dump.\u201d<\/p>\n Despite macroeconomic \u201cfog\u201d caused by a political standoff in Washington, DC, Nvidia\u2019s earnings call could prove just as impactful, underlining how enormously influential the AI industry has become.<\/p>\n \u201cThe monthly jobs report would normally dominate this week\u2019s economic calendar, but with the AI trade struggling the past couple of weeks, Nvidia\u2019s earnings are once again looking like a key piece of the market\u2019s momentum puzzle,\u201d Morgan Stanley\u2019s E-Trade managing director Chris Larkin told CNN<\/a>.<\/p>\n