Nvidia Investors Look to CEO Keynote to Keep Rebound Going

Carmen Reinicke

Mon, Mar 17, 2025, 6:35 AM 3 min read

(Bloomberg) -- Nvidia Corp. shareholders are hoping that a keynote speech from chief executive Jensen Huang can deliver enough optimism to help sustain the stock’s recent rebound.

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The company’s GPU Technology Conference (GTC) comes at a make or break moment for the firm as it heads into the next few quarters, with Huang’s Tuesday speech seen as having the ability to stave off fears that the chipmaker’s sales boom is peaking. Top of mind for investors will be updates on the company’s Blackwell product line as well as commentary on gross margins, China, competitors and growth.

“The fear of Nvidia is we are at peak earnings right now and that the second half of the year isn’t going to be nearly as good as they outlined,” said Rhys Williams of Wayve Capital Management LLC. “When he goes onstage he may be able to give people some comfort that things are going well and that the wheels aren’t falling off,” he said of Huang.

The stock remains down more than 9% this year despite a recent rebound from a March trough. Dip buyers have started to wade back in at a time when Nvidia’s valuation is near the lowest in five years, according to data compiled by Bloomberg. Shares rose as much as 1% in early trading Monday.

The selloff comes alongside a broader slump in equities led by the big technology stocks that recently drove the market to record highs. Weighing on sentiment is uncertainty around tariffs and concerns that planned heavy spending on artificial intelligence by many top technology companies may be reconsidered.

“The market is very skeptical on the stock,” said Alec Young, chief investment strategist at Mapsignals, adding Nvidia’s current valuation, coupled with its high expected topline growth, is a sign that the “market thinks the growth’s not going to happen.”

Still, there are positive factors in its favor. The chipmaker just reported earnings results that largely beat Wall Street’s expectations - though, the company did say that gross margins would be thinner than anticipated. For fiscal year 2026, analysts covering the company expect revenue to grow 57% with GAAP earnings per share increasing 52%.

The company’s position at the forefront of chips needed for AI, and the billions of dollars of spending that’s anticipated this year, could mean recent weakness is just a phase. If shares of Nvidia were trading at this multiple a few years ago, it would spell more possible downside risk than it does today, according to Matt Stucky, chief portfolio manager of equities at Northwestern Mutual Wealth Management.