The 2025 Q4 earnings cycle is slowly winding down, with the bulk of S&P 500 companies already delivering their results. It's been a strong period again concerning growth, with a decent number of companies also beating top and bottom line expectations.
Nvidia Corporation remains a Strong Sell due to deteriorating data center financing and shifting AI infrastructure needs. Private credit funding for data center GPU clusters is potentially drying up, with major projects unable to secure financing or facing long power grid delays. AI inference workloads are shifting demand toward CPUs, undermining NVDA's GPU-centric growth thesis and exposing the company to structural risk.
A lot is riding on this week's earnings report from Nvidia.
TSM, Micron and Supermicro are outpacing NVDA as AI-driven data center demand, chip shortages and margin gains power bold revenue and earnings forecasts.
NVIDIA (NASDAQ: NVDA | NVDA Price Prediction) has produced one of the most extraordinary wealth-creation runs in stock market history.
Nvidia Corporation is poised for blockbuster earnings, with a Buy rating and a $245 price target reiterated ahead of its report. Hyperscaler capex is surging, yet NVDA's stock lags due to investor fears of custom ASIC competition and perceived cycle peaking. NVDA's competitive edge lies in performance, supply chain, and TSMC capacity, with gross margins expected to rebound to 75%.
Chipmakers like Nvidia ( NASDAQ:NVDA | NVDA Price Prediction ) were the early winners in the artificial intelligence (AI) boom, as companies scrambled to acquire advanced processors for training and running AI models.
The Wall Street Journal reports the graphics and AI chip giant will soon take on Intel, AMD, Qualcomm and Apple for consumer laptop chip supremacy.
Nvidia is set to report earnings after the closing bell Wednesday, with traders anticipating a sizable move from the AI chipmaker's stock.
The breakdown of Nvidia Corporation's $100 billion AI deal with OpenAI could indicate that NVDA has more profitable options for its superior GPUs. The unprecedented capital investments from hyperscalers highlight the capacity constraints of the AI industry, validating the pricing power of NVDA. When the AI bubble fears are at the top, the valuation of NVDA stock is hanging at the bottom, providing a good entry point for the next AI Capex supercycle.
From the sold-out Blackwell ramp to the untapped potential of a China reopening, NVIDIA remains the king in a scorching-hot AI industry.
We cap off "Mag 7" earnings with Wednesday afternoon's NVIDIA (NVDA) Q4 report, and see new PPI data at the end of the week.