All Wall Street eyes will be on Nvidia when the world’s second-most valuable company announces results on Wednesday.
Nvidia has underperformed the S&P 500 in 2025. Still, investors are more relaxed than a few weeks ago, when Nvidia lost almost $750 billion in market capitalisation in the days after Chinese AI start-up DeepSeek stunned investors with news of its low-cost AI breakthrough model.
Nvidia has since recovered all of those losses, with investors reassured by promises that Big Tech isn’t about to cut spending on Nvidia’s expensive AI chips any time soon.
Amazon, Meta and Alphabet have all forecast significant capital spending increases for 2025, as well as highlighting the importance of their partnerships with Nvidia during recent earnings calls.
Revenue growth of 72 per cent is expected – impressive, no doubt, but below the 94 per cent reported in the last quarter and well below the 265 per cent growth reported a year ago.
While DeepSeek-related fears have abated, they have not disappeared. Nvidia shares are flat in 2025 and remain below December’s all-time high.
The DeepSeek sell-off, while brief, rapidly shifted the psychology around Nvidia, tech analyst Gene Munster noted recently, “from being essentially an impenetrable, bulletproof story to one that can viciously change”.
Still, one bright point is Nvidia now looks cheaper than many of its tech peers, despite boasting stronger growth projections. The bulletproof narrative may be gone, but the engine driving its growth is still revving – for now at least.
