Nvidia Results Offer Window Into AI Spending
Quarterly earnings from AI darling Nvidia is Wednesday's marquee event for markets, with much riding on the chipmaker to deliver results that could placate investors who are questioning hefty spending in artificial intelligence.
Investors have begun second-guessing U.S. tech giants since Chinese startup DeepSeek rattled the industry with AI technology ostensibly cheaper yet as capable as that of early leaders.
Market estimates have Nvidia's fourth-quarter sales at $38.5 billion and first-quarter guidance around $42.5 billion.
As usual, options point to a share price move of around 8% in either direction should the results surprise.
"This earnings report isn't just about Nvidia... It's about whether the AI revolution can maintain its breakneck pace," said Saxo's global head of investment strategy, Jacob Falkencrone.
Alleviating concern of DeepSeek triggering a slide in AI chip demand, sources have told Reuters of Chinese companies increasing orders for Nvidia's H20 chip due to booming demand for low-cost AI models.
Well if they do it, AI hype keeps rolling. If they flop, tech stocks might wobble a bit. Also, DeepSeek will still be coming in with the we do it cheaper thing and that's still going to be a competition I guess