Nvidia's stock market journey since the New Year has been bumpy with some fairly significant dips in the wake of concerns about the Chinese Deepseek's AI model, which requires significantly simpler chips than the latest from Nvidia.
On January 27 this year, after Deepseek presented its latest AI model, Nvidia's stock plummeted 17 percent on the New York Stock Exchange – a price collapse that wiped out $589 billion (equivalent to approximately 6,250 billion kronor at today's exchange rate) of the company's market value.
A Landslide
Since then, the popular stock has recovered most of the decline, and ahead of Wednesday's report for the fourth quarter, which does not reflect the turbulence in January, expectations are high.
Every report from Nvidia is a bit of a landslide. But we've also gotten used to Nvidia delivering landslide reports where they exceed expectations with a huge margin, says Frida Bratt, savings economist at Nordnet.
But this time, it might not be quite so earth-shaking.
It's going to be a fantastic report. But maybe not with those enormous margins we've gotten used to.
Important Forward-Looking
Frida Bratt believes that the most important thing about the report will be what Nvidia says about the future. Above all, about the competition, from, for example, Deepseek, and forecasts for demand for the company's chips.
This is, as always, a report that has the potential to set the tone for the entire stock market mood. It affects the other tech giants and they are so enormous and have such great significance for the American stock exchange, says Frida Bratt.
Nvidia is, after the recent years' upswing, the world's second-highest valued listed company after Apple.
