Nvidia is the business that capitalized most successfully on the most dominant narrative in the financial markets for the past two years — artificial intelligence (AI). However, despite its impressive performance, the upward trajectory of Nvidia stock (NASDAQ: NVDA) stalled out in the beginning of 2025.
The introduction of the cutting-edge, chip-efficient AI chat model DeepSeek sent markets into a frenzy in late January, sparking an American AI sell-off. Featuring twice the computing power at a fraction of the cost of models like ChatGPT, the introduction of DeepSeek was particularly painful for chip manufacturer NVIDIA Co. NASDAQ: NVDA, whose shares fell more than 14% on the date of DeepSeek's introduction.
Analysts say NVIDIA NASDAQ: NVDA is a buy ahead of earnings because the results will be robust, high-double-digit growth is likely, and the guidance will also be sound. The long-term outlook is also robust because the semiconductor company has been investing in its full stack of AI products and services.
Tech giants are dumping mountains of cash into artificial intelligence (AI) data centers. Microsoft plans to spend $80 billion this year to expand its AI capacity.
Nvidia's q4'25 earnings have a strong potential to outperform driven by strong data center growth and hyperscalers' continued investment in compute capacity. Hyperscalers' total capital investments may grow by nearly 40% in CY25 to $313b; investments will primarily go towards compute and data centers. The release of DeepSeek-V3 models emphasizes the need for AI model optimization; I do not believe this will directly translate to lower demand for GPUs.
Investors who bought the dip can afford a smug smile as they look toward the company's earnings next week.
Although the artificial intelligence (AI) sell-off due to DeepSeek's generative AI model innovation was short-lived, a handful of stocks are still off their peaks. One of them is AI king Nvidia (NVDA 2.63%), a company that provides the computing power necessary to train all of these AI models.
WeRide is a 'Buy' due to its strong foothold in China, the leading market for autonomous vehicles, and its strategic global expansions. The robotaxi market is projected to exhibit significant growth, with potential revenues of $2,377 billion if 50 million robotaxis operate globally. Nvidia's significant investment in WeRide underscores the company's potential, bolstered by its impressive gross margins and strategic partnerships with leading tech firms.
After a huge run higher, Nvidia (NVDA 2.63%) stock hasn't even been keeping up with the overall market in recent months. There are several reasons for that, but the big question for investors is whether it's now time to take advantage of Nvidia's stagnant share price.
In this video, Motley Fool contributor Jason Hall makes the case for why Nvidia (NVDA 2.63%), despite real risks after its incredible run, can still beat the market over the years ahead.
Nvidia's rally faces a threat from tariffs on chip imports. Talks over a potential deal to split Intel could lessen the risk.
Nvidia (NVDA 2.63%) stock is currently down 12% from its all-time high. It suffered a sharp sell-off in January after China-based start-up DeepSeek asserted that it had trained a competitive artificial intelligence (AI) model using a fraction of the computing power that had been deployed by leading U.S.-based developers like OpenAI.