AI's Final Exam: Software Crashes, Nvidia Reports
Wall Street in 2026 faces a software crash and Nvidia earnings. Can AI spending survive the profit squeeze and hardware shift? The market awaits the answer.
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At the Start of 2026, Wall Street Feels an Even Sharper Chill
At the opening of 2026, the chill sweeping Wall Street cuts deeper than in any previous year. The global software sector has just suffered a rare and brutal plunge. In mere weeks, the S&P 500 Software & Services Index has fallen more than 18%, wiping out nearly a trillion dollars in market value.
This is no ordinary cyclical correction, nor a fleeting panic driven by macroeconomic swings. It is a deeper, more structural anxiety: the market is beginning to suspect that AI Agents are fundamentally rewriting the logic of value distribution across the entire software industry.
At the same time, seismic shifts are quietly unfolding at the hardware layer. OpenAI has officially launched its GPT-5.3-Codex-Spark model built on Cerebras wafer-scale chips—the first time a leading model company has meaningfully reduced its dependence on NVIDIA’s GPU ecosystem. The signal of hardware diversification could not be clearer. The once-impregnable monopoly map of computing power has begun to crack.
And right in the middle of this perfect storm, the “heart” of the global AI supply chain—NVIDIA’s earnings report—is about to be released.
This is far more than a routine earnings disclosure. It is a critical stress test of the question: Can AI spending keep running at full throttle?
When profit narratives at the application layer are being questioned, and single-source hardware dependence is starting to loosen, can NVIDIA—at the very top of the chain—continue to sustain the market’s faith in its sky-high valuation? The market is waiting for an answer.
