Fileion Daily

Fileion Daily is a dynamic Tech News community within Fileio...

Joined December 2024

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Asif Mohammad Sovon

Meet Asif Mohammad Sovon, an IT Assistant in the Bangladesh Air Force and a tech writer for Fileion....

Joined February 2025

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Feb 24, 2025

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Why NVIDIA’s Stock Is Under Pressure Before Its Q4 Earnings Release?

NVIDIA Corporation, the global leader in AI chip technology, is set to release its highly anticipated fourth-quarter earnings report on February 26, 2025. The announcement comes at a critical time, as the company grapples with stock market volatility driven by emerging global competition and heightened investor scrutiny.

Stock Market Performance: A Graph of Hope

NVIDIA’s stock closed at $134.43 on February 22, reflecting a modest decline of 0.04%. The drop follows a series of market fluctuations, notably created by the rise of China’s DeepSeek AI platform, which triggered a significant sell-off in late January. But fortunately, the company’s shares have demonstrated remarkable stability, recovering almost 90% of their losses since the DeepSeek-induced downturn.

NVIDIA CEO Jensen Huang assures investors that the company’s dominance in AI hardware remains unchallenged.

He stated that -

"Post-training processes still require our computing power. In this area where NVIDIA remains indispensable."

Earnings Expectations: A Record-Breaking Quarter?

Analysts are predicting a blockbuster quarter for NVIDIA, with projections suggesting record-breaking revenue of $38.32 billion, a massive 73% year-over-year increase. Net income is also expected to surge to $21.08 billion, compared to $12.84 billion in the same period last year.

Nothing wrong with this Nvidia quarter. After-hours sell-off doesn't mean the stock market will collapse tomorrow.

Breathe. $NVDA
— Brian Sozzi (@BrianSozzi) August 28, 2024

According to analysts from UBS, improvements in the global supply chain are expected to support the sales of NVIDIA’s latest Blackwell AI chip series, a significant factor contributing to the company’s promising revenue forecast.

The DeepSeek Effect: A Misunderstood Threat?

The emergence of DeepSeek AI raised alarms among investors who feared that NVIDIA’s dominance in the AI space was being challenged. However, industry insiders believe those concerns were sudden and not logical. While DeepSeek’s advancements are noteworthy, experts agree that NVIDIA’s infrastructure is still essential for advanced AI development.

Strategic Developments: Blackwell Chips and Beyond

With the launch of its Blackwell AI chips, NVIDIA is looking to solidify its leadership in the AI chip market. The company has faced production challenges but is expected to maintain its stronghold against rising competition from alternative chipmakers.

Beyond AI chips, NVIDIA is also expanding into emerging technologies like robotics and quantum computing, signaling a broader strategy to diversify its business long-term growth.

What is NVIDIA's plan for the future?

As NVIDIA prepares to unveil its fourth-quarter earnings, both analysts and investors will keep an eye on the company’s performance indicators and future growth strategy. Given its strong recovery from market setbacks and continued technological leadership, the upcoming report could harden NVIDIA’s place as the undisputed leader in the global AI chip industry.

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