Nvidia's (Nvda) earnings will be A critical test for a trade AI After the slow beginning of the year until the year. But even if Chip Giant beats the noble expectations of Wall Street, it does not guarantee that shares will regain lost dynamics.
In fact, the road is likely to be bumpy, because concerns about the Chinese startup AI Deepseek, the slowdown of growth and export restrictions remain potential overhangs on stocks. And this will make Wall Street send a clear message: Brace for a wild ride.
“We expect significant volatility … We saw it every time,” said the main market strategist Raymond James Matt Orton Yahoo finance catalysts.
Listen: Is Nvidia too expensive?
The options market predicts 7% of NVIDIA sharing fluctuations when Giant Chip Giant reports earnings in the fourth quarter. This is a more subdued reaction compared to recent quarters, but it is still a lot of money – equal to about $ 230 billion in market value.
And what distinguishes this quarter from others is that volatility could take longer, the professionals warn.
Baycrest Equity Derivatives CEO David Boole He told me that shares could remain on the roller coaster month after reception, because some investors bought a dip after the disob after a deep search, while others who are scared may not be satisfied with the results.
“We had a dress rehearsal about a month ago,” Boole said. “The meaning is what they can say that NVIDIA really brings another 20% per day?”
Meanwhile, NVIDIA has once reached the relentless momentum. The shares increased by only 0.9% since the beginning of the year after the last month dropped by 3.9%. It is a dramatic slowdown in the massive overcoming of the company in 2024, when the shares increased by 171% and represented more than 22% of the S&P 500 2024 profits.
Chips Giant is no longer the best contributor S&P 500. Meta (Meta) now leadsIt represents 13% year -on -year profits from benchmark compared to 5% of NVIDIA.
Despite short -term uncertainty, many analysts on Wall Street remain in the long -term NVIDIA because Noted the powerful editor of Yahoo Finance Brian Sozzi. Vivek Arya Bank of America warns against headwinds in the current quarter of the Blackwell crossing, the drop of Hopper and the limitation of China-followed by strong long-term prospects.
“The shares could be volatile posts, but we expect positive momentum to continue, as investors are looking forward to the leading new NVIDIA product manifold (GB300, Rubin) and the overall addressing market expansion to robotics and quantum technologies at the upcoming GTC conference (17. March). “Arya wrote a recent remark to clients.
