Nvidia’s recent stock performance reflects a notable decline following its fourth quarter earnings announcement, with shares experiencing a significant drop.
Nvidia, a prominent player in the tech industry, has seen its stock value decrease by 9.8% since its earnings results were released on February 26. This marks a substantial decline from its mid-January peak, losing 24% in value. Additionally, Nvidia’s stock has fallen below important moving averages, including the 50-day, 100-day, and 200-day averages, signaling a negative shift in investor sentiment.
Rich Ross from Evercore ISI remains optimistic about Nvidia’s prospects, despite the downturn. He highlights that the stock is holding above the DeepSeek sell-off lows of around $114. Ross expresses his continued faith in Nvidia, stating that he is a buyer and believer in the stock, although he acknowledges that breaching these lows would be concerning.
The company’s earnings call presented mixed messages. Although Nvidia anticipates gross profit margins between 70.6% and 71% in the coming quarter, this forecast fell short of some analysts’ expectations. Eric Jackson from EMJ Capital notes the company’s efforts to counter bearish opinions by promoting its future potential and addressing concerns over AI investment digestions from major tech players like Amazon.
Jensen Huang, Nvidia’s CEO, emphasizes the ongoing demand for Nvidia’s products, particularly the new Blackwell chip. He assures investors of the company’s ability to scale production and meet high customer demand. Huang also hints at upcoming product launches at Nvidia’s GTC conference, aimed at showcasing future innovations.
Support from long-term investors remains strong, with Anjney Midha of Mistral AI noting that strategic infrastructure investments by nation-states could eventually benefit Nvidia. Likewise, Cathie Wood of ARK Invest continues to back Nvidia, reiterating her confidence in the stock’s long-term potential.
While Nvidia’s stock is facing current challenges, both analysts and long-term investors see potential for recovery and growth. As the company navigates through market fluctuations, the focus remains on future innovations and market demand.
