Author Carolina Mandl
New York (Reuters)-Nvidia Profit will take a US market course next week, as investors seek confirmation that the investment trend has been guided by AI-AI, which has launched sections for two years, pristine after last month’s panic sales she has launched. Chinese startup Deepseek.
Viewed as the bell of the growing AI industry, Nvidia is the second most valuable company in the world, with 6.3% weight on the S&P 500, LSEG states. Its shares have jumped over 550% in the last two years.
Recently stumbled, however, it followed after Chinese startup Deepsek discovered a lower cost of AI model, which considered the threat of dominance of US rivals, lowering Nvidia approximately 17% of January 27, which is equivalent to $ 593 billion – a market value loss.
The shares have almost fully recovered from Premac, and the company said that Deepseek’s progress proves the need for several of his chips, but concerned investors fear that earnings could revive some market turbulence.
“It is a difficult placement in a conference call next week, because there is anxiety because of the desire to call the top in Nvidia. So, I would not be surprised to see the rotation and a rather violent reaction in the market under any conditions,” said Mike Smith, Allspringov Growth team chief.
He said investors could turn from AI store to sectors such as health care, software and finance.
Nvidia options imply a momentum of 7.7% for shares in any direction after the results, in accordance with the average stretch of shares of 7.6% per day after the results in the last 12 quarters, according to OPTIONS Analytics Service Oratics. Since market capitalization AI chip hovered about $ 3.4 trillion, the stock stroke moved into options equates to a swing market value of about $ 260 billion, approximately the size of a wells fargo.
Nvidia will be expected to announce a profit from the fourth quarter of $ 20.89 billion on February 26, fueled by approximately 72% of the increase in revenue compared to the year earlier, LSEG data showed.
With good numbers in the fourth quarter on the way, all eyes will be on the guidelines that Nvidia envisages both the offer and demand for their chips to justify their rich value assessment as well as the odds of the sector.
Nvidia recently traded about 32 times in advance estimating a 12 -month earnings, less than about 40 in early November, according to LSEG Datastream. S&P 500 traded with 22 times ahead of earnings.
“Nvidia is the last part of a market puzzle that could help reset investor’s feelings,” said Matt Orton, the main market strategist in Raymond James Investment Management, adding that the stock market succeeded well despite the insecurities around US tariff and fiscal policy, and the decline in retail sales and a warmer consumer price index.
