Nvidia stock dropped due to competition but may see growth with upcoming Q4 results

From Nasdaq: 2025-02-05 07:43:00

Nvidia (NASDAQ: NVDA) stock has dropped over 10% in 2025 due to DeepSeek’s low-cost AI model. DeepSeek’s $6 million R1 reasoning model outperformed Nvidia’s AI, causing a 17% stock drop. However, Nvidia’s upcoming Q4 results could show promise in the AI chip market, potentially boosting the stock.

President Trump’s $500 billion AI infrastructure investment with SoftBank, OpenAI, and Oracle could benefit Nvidia. Stargate’s plan includes 20 data centers and 100,000 jobs, with Nvidia as a technology partner. Oracle relies on Nvidia’s GPUs for AI infrastructure, and Nvidia’s dominance in the AI chip market may continue.

Nvidia’s revenue estimates for fiscal years 2026 and 2027 are expected to rise, potentially leading to a 46% stock price increase. With a forward earnings multiple of 23, Nvidia appears attractive compared to the Nasdaq-100 index’s 27. Continued AI investments could drive Nvidia’s growth momentum further.

The Motley Fool identified Nvidia as one of the 10 best stocks to buy now. While the stock may offer strong returns, investors should consider other options. Stock Advisor service provides guidance on building portfolios and has outperformed the S&P 500 since 2002. Consider all factors before investing in Nvidia.



Read more at Nasdaq: Prediction: Nvidia Stock Is Going to Soar After Feb. 26