NVIDIA’s (NASDAQ:NVDA) stock rollercoaster continues as CEO Jensen Huang makes explosive comments about AI advancements shaking Wall Street’s assumptions. The chipmaker’s shares nosedived 16.9% in a single trading session last month following DeepSeek’s open-source R1 reasoning model launch – only to rebound dramatically weeks later.
The $600 Billion Whiplash
Between January 24-27, NVIDIA lost $600B in market value as shares plunged from $142.62 to $118.52. Huang dismissed concerns that DeepSeek’s breakthroughs threaten NVIDIA’s dominance: “It’s accelerating AI adoption – compute demand will explode, not collapse”. His confidence appears validated as shares rebounded to $140 by February 23.
Earnings Showdown Looms
All eyes now turn to NVIDIA’s Q4 earnings report on February 26. Analysts expect fireworks as Oppenheimer analysts recently doubled down on their bullish outlook, calling NVIDIA “the arms dealer of the AI revolution”. The company’s performance is widely seen as a bellwether for the $250B AI industry projected to grow at 40% CAGR through 2030.
Current Trading Snapshot
As of February 23 afternoon trading:
– Price: $134.43 (-4.05% past 24hrs)
– Volatility: Shares swung between $131.14-$138.85 last week
– Recovery: Up 13% from January lows despite ongoing turbulence
Huang emphasized that while pre-training efficiency improves through models like R1, post-training “remains compute-intensive” – a direct nod to NVIDIA’s growing data center business. With AI industry revenue projected to hit $250B this year, NVIDIA’s upcoming earnings will test whether reality matches the hype.
