Nvidia is set to share its fourth quarter earnings on February 26, and Bank of America (BofA) is still very positive about the company. They believe Nvidia is strong, even with the issues happening between countries. BofA thinks that a new AI startup called DeepSeek won’t hurt Nvidia’s success. However, they do expect Nvidia to have less profit in the first quarter of 2025 because of rules in China and changes to their Blackwell products.
BofA hopes Nvidia will reassure its investors about how well the new Blackwell graphics processors are doing and show confidence for 2025 and 2026. They think Nvidia’s data center sales could grow over 60% compared to last year.
BofA explained that Nvidia’s success comes from a few key areas like improving AI technology and data center upgrades. They added that even if one area changes, the company will still do well overall.
Investors had worried when DeepSeek released an open-source AI model, which made Nvidia’s stock drop significantly, losing $600 billion in value in one day. However, BofA’s note might help calm those fears.
In January, Nvidia’s CEO, Jensen Huang, said that practical quantum computers could be here in 15 to 30 years. Some big names like Mark Zuckerberg and Bill Gates had different opinions on this.
FAQs:
– When will Nvidia share its earnings? Nvidia will announce the information on February 26 around 1:20 PM PT.
– Will problems with China hurt Nvidia? The Bank of America believes that strong demand in Western markets will help balance any issues from China
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