Nvidia (NVDA) is set to release its latest earnings this week on Wednesday, August 28, with Wall Street abuzz over the sway the chipmaker's results could have on tech-heavy indexes (^GSPC, ^IXIC). If Nvidia doesn't live up to the hype, should investors be worried?

Miramar Capital Co-Founder and senior portfolio manager Max Wasserman joins Wealth! to give his expert opinion on market expectations around the chip stock.

If the Nvidia print is disappointing, Wasserman believes investors are "going to start reexamining the multiples."

"They're going to apply for the Microsofts (MSFT) to Apples (AAPL), the Broadcoms (AVGO), and other AI stocks. They're going to think 'Are we too high? Are we too optimistic? Is the valuations just too big for what we're seeing in the growth rate? Did we pull forward too much in the earnings from forward years?'" Wasserman tells Yahoo Finance, adding:

"So I think if they show you a chink in the armor then people may say 'maybe we need to take a couple of multiples out of points, out of that' and bring the Nasdaq (^IXIC) down a little bit. Long term, AI is definitely a growth engine, but at these multiples, I don't believe there's a lot of room for error here and as investor I'd be cautious going into the print."

Wasserman also weighs in on the implications of an interest rate cut by the Federal Reserve and what it could mean for the US housing market.

Follow along with Yahoo Finance's latest coverage of Nvidia ahead of its earnings this week:
Is Nvidia still a top AI investment?: Opening Bid
Why Nvidia's stock rally is not driving broader market gains
Nvidia earnings highlight a busy end of August: What to know this week
Nvidia gets ready to take over the stock market (again)
Nvidia earnings: What the options market is anticipating
Nvidia still the best AI chip play right now: Analyst
4 AI terms Nvidia investors should know
Nvidia earnings 'absolutely key to the AI infrastructure trade'

For more expert insight and the latest market action, click here to watch this full episode of Wealth!

This post was written by Nicholas Jacobino