- Nvidia’s (NVDA) stock rose 4.50% to $132.30 ahead of its Q4 earnings, with analysts expecting a 73% revenue jump to $38.2 billion and EPS of $0.85, driven by $44 billion in 2024 GPU purchases from Microsoft, Amazon, Google, and Meta, per DA Davidson.
- Despite a 9% slide over five days amid inflation fears from Trump’s policies and Blackwell delays, 51 of 68 analysts tracked by Market Watch rate Nvidia a ‘Buy,’ targeting $175.39, reflecting confidence in its AI chip leadership.
- The $3.3 trillion firm faces scrutiny over Big Tech’s AI spending pace and competition, with this earnings report a critical test of its stalled stock’s trajectory and the broader AI trade’s resilience against export and supply risks.
Nvidia’s stock (NVDA) climbed 4.50% to $132.30 on Wednesday, a pre-earnings lift for the $3.3 trillion AI chip colossus – second only to Apple (AAPL) in global heft – as investors brace for a Q4 report that could either cement or crack the AI trade’s momentum. Wall Street’s eyeing a 73% revenue surge to $38.2 billion and a 60% EPS leap to $0.85, fueled by Big Tech’s $44 billion splurge on Nvidia’s $40,000 GPUs in 2024, per DA Davidson, with Microsoft (MSFT), Amazon (AMZN), Google (GOOG), and Meta (META) betting big on AI infrastructure amid a market scrutinizing hyperscaler spending stamina. The chip titan’s moment of truth arrives against a backdrop of intense pressure—shares shed 9% over the past five trading days through Tuesday, rattled by inflation jitters tied to Trump’s trade and immigration stance, plus whispers of tighter export curbs and Blackwell chip delays.
Analyst sentiment holds firm, with 51 of 68 tracked by MW rating Nvidia a ‘Buy,’ 11 ‘Overweight,’ and 6 ‘Hold,’ pegging a $175.39 target over the next year—a vote of confidence despite a six-month stock stall that’s tested faith in its AI-driven ascent. Nvidia’s GPUs remain the backbone of the AI revolution, powering everything from cloud giants to cutting-edge research, yet the specter of competition looms, with rivals like Advanced Micro Devices (AMD) and Broadcom (AVGO) chipping away and DeepSeek’s cost-efficient models stirring the pot, though hyperscaler CapEx keeps flowing Nvidia’s way. The Blackwell rollout, dogged by reported hiccups, adds another layer—success could silence doubters, but stumbles might amplify fears of a plateau in the torrid growth that’s propelled Nvidia’s $3.3 trillion valuation.
Wednesday’s 4.50% uptick hints at optimism, yet the stakes couldn’t be higher—this earnings beat, if it lands, must reassure a market edgy over Trump-era policy ripples and export risks, all while proving Nvidia’s $40,000 silicon still commands Big Tech’s checkbooks. The past six months’ stagnation reflects broader index wobbles, but Nvidia’s 152% revenue growth over the last year underscores its grip on AI’s bleeding edge, a dominance analysts bet will stretch into 2025. Whether this report reignites the stock’s stalled climb or flags a ceiling, it’s a pivotal gauge of AI’s staying power in a world of shifting economic and geopolitical currents.
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