Nvidia's profit report next week could steer the U.S. stock market's course, as investors seek confirmation that the AI-driven investment trend, which has powered equities for two years, is intact after last month's panic-selling triggered by the Chinese startup DeepSeek.
The shares have almost recouped all their losses from the DeepSeek rout as investors look ahead to the chip maker's earnings next week.
The U.S. stock market has entered 2025 on uncertain footing, with early-year volatility unsettling investors.
Investors misinterpreted DeepSeek's AI advancements, Nvidia CEO Jensen Huang said. DeepSeek's large language models were built with weaker chips, rattling markets in January.
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Nvidia Corporation's growth continues to slow, while the valuation remains in the bubble territory. Nvidia could provide disappointing guidance next week, acknowledging the DeepSeek effect on Gen AI capex. Thus, Nvidia could burst the Gen AI bubble if it signals a slowdown in Gen AI capex, next week as it reports earnings.
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Nvidia Corp (NASDAQ:NVDA, ETR:NVD)'s quarterly revenue and data center performance are expected to meet or exceed market expectations when it reports its latest earnings on February 26, analysts at UBS believe. For Q4, they expect revenue of $42.1 billion and earnings per share (EPS) of $0.95, above Street estimates of $38 billion and $0.84 respectively.
When investors think about monster stocks that went stratospheric over the past decade, companies like Nvidia (NASDAQ:NVDA) quickly come to mind.
[00:00:04] Doug McIntyre: So Lee, if.
Nvidia earnings are on deck next Wednesday. Analysts are wondering whether the company can deliver another big beat or if Blackwell shortages will limit that potential.
Why Nvidia's Q4 Earnings Will Be One Of The Most Important In Its History