Semiconductor makers’ shares lost ground on Monday ahead of the release of AI darling Nvidia’s (NVDA) latest financial results, which are due to be released after the market close on Wednesday.

Nvidia shares closed 2.3 percent lower on Monday, giving up some of Friday’s gains as expectations for the company’s results rose. Other chip stocks also lost ground. The PHLX Semiconductor Sector Index (SOX) fell 2.5 percent on Monday.

Nvidia’s earnings could impact the broader market

Nvidia has been a key contributor to U.S. stocks’ record run through 2024, with high expectations for the company’s AI-powered growth laying the groundwork for massive gains. In June, Nvidia briefly overtook Microsoft (MSFT) as the world’s most valuable company by market capitalization.

Given the chipmaker’s enormous influence on major indices, a major fluctuation in its share price would have an impact on the entire market.

Analysts have high expectations for Nvidia’s upcoming report, predicting second-quarter revenue and profit to more than double from the same period last year. Their forecasts have also increased in recent days, which could make it harder for the company to impress investors.

Micron and AMD slide with Nvidia on Monday

Shares of Nvidia partner Micron Technology (MU) also fell by almost 4% on Monday after Needham reportedly lowered his price target for the stock from $150 to $140. Analysts said the forecast for shipments of Micron’s DRAM and NAND products remained unchanged.

Other chip stocks that fell on Monday included Lam Research (LRCX) and Advanced Micro Devices (AMD), which lost 3.4% and 3.2%, respectively.