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A major recalibration is gripping global AI and technology markets as a wave of heavy selling signals the end of “unchecked optimism,” according to Nigel Green, CEO of deVere Group.
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The financial advisor warns that investor patience is wearing thin, and companies must now prove that massive AI spending translates into tangible earnings growth, with Nvidia’s upcoming earnings report serving as a critical test for the entire sector.
From AI Hype to Financial Scrutiny
Following four consecutive sessions of declines across major indices, including a 3% slide in Japan’s Nikkei, Green asserts that the market’s phase of rewarding promises is over. “AI has been the engine of global markets for two years, but the phase of unchecked optimism is giving way to a sharper focus on resilience,” said Green. He emphasized that the next few weeks will set the tone for 2026, with investors now punishing firms where spending outpaces revenue potential and rewarding disciplined operators like Alphabet and Amazon.
Nvidia’s Earnings: The Market’s Most Critical Test
All eyes are on Nvidia’s quarterly report, widely seen as the most important market event of the quarter. The company faces extraordinary expectations, and its results will be scrutinized for any sign of weakness.
“The reaction will not hinge on scale alone. Investors want to see whether profitability is expanding in line with investment,” Green noted. Key factors include demand for its new Blackwell platform, the status of hyperscaler contracts, and forward guidance that addresses evolving U.S. export controls to China under the Trump administration.
Geopolitics and the New Investment Landscape
The policy environment adds a complex layer for tech giants. Washington’s export controls and domestic supply-chain priorities are forcing companies to adapt their growth strategies to new geopolitical realities. This makes clear and confident forward guidance from market leaders like Nvidia more critical than ever, as it will shape expectations for global AI investment through 2026.
Selectivity is the New Strategy for Investors
Green concludes that the recent market rout reveals a new fragility and a shift in investor mindset. “Selectivity has moved from advantage to necessity,” he stated. “AI remains transformational, but investors who understand the distinction between scale and sustainable returns will be best-positioned for the opportunities emerging on the other side of this adjustment.”
