Nvidia experienced a significant market capitalization loss due to the emergence of DeepSeek, a Chinese AI startup, highlighting the competitive and rapidly evolving nature of the AI industry.
Nvidia (NVDA) rose modestly Friday amid more bullish projections for its most advanced liquid-cooled rack systems. The company has entered a quiet period ahead of its earnings report Feb. 26. Nvidia stock is clearing a key resistance level. Is Nvidia a buy now?
Analysts at Mizuho noted on Friday that investors should be patient and hold out to the May quarter while Nvidia works through some “growing pains” in shipping its complex server. It is expected to drive strong sales in the second half the year.
They see Nvidia capturing 44% of the AI server market. But thanks to its pricing power, sales could be $260 billion of the total $350 billion AI accelerator chip market in 2027. Mizuho has an outperform rating and price target of 175 on Nvidia.
Nvidia Earnings Loom
Nvidia will report its fourth quarter results on Feb. 26. FactSet estimates stand at $38 billion in revenue and 84 cents per share in earnings. That indicates a 72% increase in sales and 64% in earnings.
Earnings bring some risks. Add that to the fact that this is the first earnings season since 2022 that the Magnificent Seven companies have not reported a sales surprise.
Source: https://www.investors.com/research/nvda-stock-is-nvidia-a-buy-february-2025/