(Bloomberg) — Nvidia Corp. is not expected to will report earnings in another month, but this week’s results from the chipmaker’s biggest customers will set the tone for its shares, which are trading near all-time highs on optimism about the AI ​​boom.

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Microsoft Corp., Alphabet Inc., Amazon.com Inc. and Meta Platforms Inc. all report earnings in the coming days. Traders will be watching their capital spending closely to gauge demand for Nvidia’s chips, which are prized for their artificial intelligence. The group accounted for more than 40% of Nvidia’s revenue in the second quarter, data compiled by Bloomberg show.

Wall Street expects the four tech giants to release a record amount of capital spending, but any disappointment over the level of spending will rattle Nvidia shares, which have nearly tripled this year and have a market value of more than $2 trillion -have dollars. It is likely to be a crucial development for the entire stock market. Nvidia was the biggest contributor to the S&P 500 Index’s gains this year, accounting for about a quarter of its 22% rise.

“If these companies are generally saying that capital spending is increasing even modestly, then that’s what Nvidia really needs to maintain that momentum,” said Dave Mazza, CEO of Roundhill Investments. “If anything is bad, you could see a lot coming out of the inventory.”

The four tech giants collectively pumped a record $56 billion into capital spending in the third quarter, according to Bloomberg’s average analyst estimates. Much of this spending goes to Nvidia and other manufacturers of AI-related equipment, and this amount is expected to continue to rise in the coming quarters.

All signs point to continued strength in AI-related spending. From chip maker ASML Holding NV to Taiwan Semiconductor Manufacturing Co., AI has been a bright spot this earnings season.

That backdrop has helped boost Nvidia shares, along with CEO Jensen Huang’s assurances that production of its new Blackwell chips is on track and in high demand. Nvidia has been the biggest beneficiary of heavy spending on AI computing equipment. The stock hit a record high last week and its market capitalization is now about $3.5 trillion, just less than Apple Inc., which is still the world’s most valuable company.

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