SAN JOSE, Calif. — Nvidia is at the center of attention in the U.S. technology sector as investors prepare for the company's latest earnings report, looking for evidence that the enormous artificial intelligence investment cycle remains sustainable.

Nvidia shares rose in premarket trading Tuesday alongside other semiconductor companies as technology stocks recovered from a sharp selloff. Investors are particularly focused on whether strong demand for AI accelerators and data-center infrastructure can justify the industry's increasingly high valuations.

The results could have implications well beyond Nvidia. Major cloud and technology companies are spending heavily on AI computing infrastructure, while investors are increasingly questioning how quickly those investments will generate returns.

Nvidia's numbers could therefore become an important signal for the broader U.S. technology industry, particularly semiconductor companies and businesses supplying data-center equipment, networking and power infrastructure.

The market is also watching for commentary on AI demand, supply constraints and future infrastructure spending. Nvidia's earnings arrive alongside important U.S. inflation data and ahead of Federal Reserve Chair Kevin Warsh's appearance at the Jackson Hole economic symposium, creating several potential catalysts for technology stocks this week.

For America's technology sector, the central question is increasingly clear: can AI spending continue at its current extraordinary pace while producing the returns investors expect?