NVIDIA (Nvda) income will be a Critical test for AI trade After the start of the year of the stock. But even if the chip giant is the high expectations of Wall Street, it does not guarantee that the stock will resume its lost momentum.
In fact, the coming route is likely to be a jack as concerns about the startup of Chinese AI in depth, the slowdown in growth and export restrictions remain potential overhangs on the stock. And that encourages Wall Street to send a clear message: hug for a wild ride.
“We are waiting for significant volatility … We have seen him play each time,” said the chief strategist of Market Raymond James, Matt Orton Yahoo Finance catalysts.
Listen: Is Nvidia too expensive?
The options market provides a 7% swing in NVIDIA shares when the flea giant reports profits in the fourth quarter. It is a more silent reaction compared to recent quarters, but it is still a lot of money – equivalent to around $ 230 billion in market value.
And what distinguishes this quarter from others is that volatility could persist longer, warn the pros.
Director General of Boycrest Equity derivatives David Boole Told me that the action could stay on roller coaster for a month after profits, because some investors have already bought the decline after depth sales, while others who are frightened may not be satisfied with the results .
“We had the general rehearsal about a month ago,” said Boole. “The meaning is what can they really make Nvidia pass at 20% in a day?”
Meanwhile, Nvidia’s formerly relentless impulse has decelerated. Actions have only increased by 0.9% since the start of the year after dropping 3.9% in the last month. It is a spectacular slowdown in the massive outperformance of the company in 2024, when the shares jumped 171% and represented more than 22% of the gains of the S&P 500 in 2024.
The chip giant is no longer the best contributor to the S&P 500. Meta (Meta)) NOWRepresenting 13% of the earnings of the reference year, compared to 5% of Nvidia.
Despite short -term uncertainty, many Wall Street analysts remain optimistic about Nvidia’s long -term future, as Noticed by the editor -in -chief of Yahoo Finance, Brian Sozzi,. The Vivek Aya of Bank of America warns against the winds in the current quarter of Blackwell Transition, Hopper Discines and China Restrictions – to be followed by large long -term perspectives.
“The action could be volatile post results, but we expect the positive momentum to take up while investors are looking forward to the first pipeline of new NVIDIA products (GB300, Rubin) and the total expansion of Addressable market in robotics and quantum technologies at the next GTC conference (March 17), “Arya wrote customers in a recent note.
