Nvidia’s upbeat quarterly forecast signaled that the AI boom is not over, but it failed to bring buyers back into the “Magnificent Seven” stocks that have dipped in the last three months.
The stock lost about 3% to $127.10 in choppy trading, and other members of the group such as Microsoft and were marginally lower.
Nvidia is seen as a barometer of the AI market, with investors counting on it to fuel a sputtering rally following the “Magnificent Seven” stocks’ tumultuous retreat from their late-2024 peaks.
Chinese startup DeepSeek’s low-cost AI model had also fanned investor skepticism over the billions of dollars earmarked by Big Tech for AI infrastructure, with many of the stocks still struggling to recoup the losses.
Fears of a pullback in spending on Nvidia’s priciest AI chips had evaporated more than half a trillion dollars of its stock market value in a single day last month, a record on Wall Street.
Subho Moulik, Founder & CEO, Appreciate, said, “ Nvidia has once again delivered a stellar Q4 earnings update, posting $39.3 billion in revenue, which represents a 78% YoY increase from $22.1 billion in the same quarter last year, comfortably beating the market estimate of $38.1 billion.”
“The real star of the quarter? Blackwell AI chips, which recorded a staggering $11 billion in first-quarter sales alone—the fastest in the company’s history. Net income also reached $22.1 billion (80% YoY growth), surpassing analysts’ expectations of $19.8 billion, suggesting investors might rethink their current strategy of investing in China and coming back to the US.”
