John Deo

Nvidia’s Recent Sell-Off Presents a Buying Opportunity Ahead of Earnings, Says Evercore

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    Posted by John Deo Feb 11 - Filed in General - #financialmodelingprep  - 35 views

    Nvidia (NASDAQ: NVDA) shares have lagged behind the S&P 500 by 9% over the past month as investors reacted to Chinese AI startup DeepSeek’s entry into the market. However, analysts at Evercore ISI believe the pullback presents a strong buying opportunity ahead of Nvidia’s upcoming earnings report.

    Why Did Nvidia Stock Decline?

    \ud83d\udd34 DeepSeek’s AI Innovation: Concerns emerged that DeepSeek’s custom AI chips could erode demand for Nvidia’s GPUs.
    \ud83d\udd34 Shift to ASICs: Speculation about AI companies moving from Nvidia GPUs to ASICs (Application-Specific Integrated Circuits).
    \ud83d\udd34 Blackwell Delays: Uncertainty around the release timeline of Nvidia’s next-gen Blackwell architecture.

    Why Evercore Remains Bullish on Nvidia

    \u2705 DeepSeek's Tech Is Evolutionary, Not Disruptive

    • Evercore’s channel checks with AI engineers suggest DeepSeek’s advancements provide incremental cost savings rather than a game-changing breakthrough.
    • Lower computing costs are expected to increase AI adoption, ultimately driving more demand for Nvidia’s GPUs.

    \u2705 Nvidia's Software Ecosystem Gives It an Edge

    • Nvidia remains years ahead of rivals like AMD (NASDAQ:AMD) and AWS due to its strong CUDA software stack and developer support.
    • AI firms rely on Nvidia's software tools, such as NIMS and NeMo, to train and deploy Large Language Models (LLMs) seamlessly across different computing environments.

    \u2705 ASICs Won’t Replace Nvidia’s GPUs Anytime Soon

    • While ASICs offer powerful, specialized AI computing, Nvidia’s programmable GPUs remain essential for flexible AI model training and inference optimizations.
    • Innovations like LiquidAI, which train models during the inference process, make Nvidia's GPUs indispensable for cutting-edge AI development.

    The Road Ahead: Nvidia’s Earnings & Market Outlook

    \ud83d\udcc5 Nvidia’s quarterly results are due on February 26.
    \ud83d\udcca Analysts will closely watch revenue growth, AI chip demand, and updates on Blackwell’s rollout.
    \ud83d\ude80 Will Nvidia’s earnings reaffirm its dominance, or will AI competition weigh further on its stock?

    \ud83d\udcca Track Nvidia’s Market Trends With:

    \ud83d\udccc Market Biggest Gainers API – Stay ahead of Nvidia’s stock movements and market leaders.
    \ud83d\udccc Earnings Calendar API – Get real-time earnings reports and analyst expectations.

    With AI demand accelerating, Nvidia’s software moat and ecosystem strength could keep it at the forefront of the AI race.