nvidia's ai dominance: can it withstand rising competition?

2025-02-24 nvidia

Santa Clara, Monday, 24 February 2025.
nvidia, a leader in ai technology, faces increased market volatility and competition. the stock opened today, february 24, at $136.56 and climbed to $137.03 by 09:51 am ET, a +1.93% increase. nvidia is scheduled to announce earnings on february 26, which analysts predict will be a critical moment. despite nvidia’s historical pattern of exceeding revenue forecasts by $2 billion, the stock’s reaction to earnings remains uncertain. some analysts believe the stock could swing 9% post-results. nvidia replaced intel in the dow jones industrial average in november 2024.

earnings expectations and market sentiment

Nvidia’s upcoming earnings report is a focal point for investors and analysts [7]. The company’s fiscal fourth-quarter revenue is projected to grow by 72.1% to $38.0 billion, with gross margins of 73.5% [3]. Historically, Nvidia has surpassed revenue estimates and raised guidance [3]. However, some analysts suggest the stock might decline even if it beats expectations, highlighting the high stakes and investor anticipation surrounding this earnings release [3]. Market watchers note that Nvidia’s earnings will be an important test for AI stocks [7].

competitive landscape and stock performance

Nvidia’s stock performance is crucial for the S&P 500 [7]. Despite its significance, Nvidia has lagged behind its ‘Magnificent Seven’ peers and the broader Nasdaq over the past six months [7]. The stock’s 52-week range is $75.606 to $153.13 [7]. On February 24, 2025, Nvidia’s stock showed positive movement, with a last price of $137.03, a change of +$2.60, and a percentage change of +1.93% [7]. This rebound occurs amid a broader market recovery following the Nasdaq’s worst week in three months [7].

potential stock split and long-term growth

Nvidia’s stock splits have historically signaled strength in the AI sector [6]. The company had four stock splits between 2000 and 2007, followed by splits in July 2021 and June 2024 [6]. Between 2007 and 2024, Nvidia’s stock value increased by nearly 14,000% [6]. Since the June 2024 split, the stock has risen approximately 15% [6]. While a stock split may be considered, Nvidia is unlikely to face pressure from the S&P Dow Jones Indices to do so [6].

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