- Nvidia’s (NVDA) stock fell below the $131 level as Circle Squared Alternative Investments’ Jeff Sica predicted on Fox Business that its upcoming Wednesday earnings will “burst the AI bubble,” citing overhyped expectations for a triple beat on earnings, revenue, and guidance that the company won’t meet.
- Sica highlighted emerging threats like China’s DeepSeek, a cheaper AI alternative, and Microsoft’s (MSFT) reduced data center spending as signs of Nvidia’s vulnerability, despite its past success that enriched investors since he recommended it in 2018.
- While trimming his own Nvidia holdings, Sica plans to retain some shares long-term, expecting solid but not stellar results that could signal a broader cooling of the AI frenzy driving the stock’s massive valuation.
Nvidia’s (NVDA) stock took a sharp hit in Monday morning trading, sliding to an intraday low of $130.61 per share as the broader market flipped from green to red, with the Nasdaq (COMP) shedding more than 220 points and the Dow (DJIA) slipping 60. The plunge comes just days before the tech giant’s highly anticipated earnings report on Wednesday, and Jeff Sica of Circle Squared Alternative Investments isn’t mincing words: he’s calling it the moment Nvidia will “burst the AI bubble.” Speaking on Fox Business, Sica, who’s been touting Nvidia since 2018 – back when its gains fueled Bentleys and beach houses – now warns that the stock’s stratospheric rise has collided with the curse of sky-high expectations.
Sica’s been around the block, and he’s seen Nvidia’s faithful cash in big over the years, but he’s sounding the alarm on what he calls a “triple beat” mirage—where the company would need to smash earnings, revenue, and guidance to keep the hype alive. He predicts the numbers will be solid but not spectacular, falling short of the fevered dreams pinned on CEO Jensen Huang’s next conference call. Adding to the unease is the specter of DeepSeek, a Chinese AI player lurking like some enigmatic threat, offering cheaper alternatives that could dent the lavish capital spending Nvidia’s customers have thrown at AI infrastructure. It’s a mystery, Sica says, but one that’s already spooking the market.
The vibe shift is palpable. Nvidia, once the undisputed belle of the tech ball, has been flatlining lately, showing cracks in its armor. Sica points to Microsoft’s (MSFT) move to dial back data center spending – reported just that morning – as a red flag, a sign that the AI frenzy might be cooling. He’s not alone in sensing trouble; the stock’s vulnerability has been brewing, and Wednesday’s report could be the reckoning. Still, Sica’s not bailing entirely—he’s trimmed his Nvidia stake but plans to hold some, a nod to his long-term bent and a hope for tax relief, though he quips he’d rather see the IRS vanish altogether.
This isn’t just about Nvidia’s numbers—it’s about the AI narrative that’s propelled the company to a $3 trillion-plus valuation, making it a poster child for the tech boom. Sica’s argument taps into a broader question though: has the market overhyped AI’s near-term payoff? With DeepSeek challenging the cost equation and giants like Microsoft rethinking their budgets, Nvidia’s report could ripple far beyond its own balance sheet. For now, the stock’s down, the mood’s tense, and Sica’s betting that the bubble he’s long ridden is about to pop—leaving investors to wonder if the AI party’s finally over.
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