Nvidia to Offer AI Trades Reality Check
Nvidia's profit report next week could steer the U.S. stock market's course, as investors seek confirmation that the AI-driven investment trend, which has powered equities for two years, is intact after last month's panic-selling triggered by the Chinese startup DeepSeek.
Seen as a bellwether of the burgeoning AI industry, Nvidia is the world's second most valuable company, with a 6.3% weight on the S&P 500, according to LSEG. Its shares have skyrocketed over 550% over the last two years.
A recent stumble, however, came after the Chinese startup DeepSeek unveiled a lower-cost AI model that was seen as a threat to the dominance of U.S. rivals, driving Nvidia down roughly 17% on January 27, equivalent to $593 billion - a record one-day market value loss.