Nvidia’s stock moves are over-analyzed, the analyst said.
News outlets are less focused on inbound activities. Nivea (NVDAAccording to a Wall Street analyst, stocks should consider long-term trends.
“Do you feel like the press/media talk and write too much about the daily stock moves in Nvidia? Do you believe there’s always a new story or trend behind every move,” an analyst at Mizuho Securities said in a client note Wednesday.
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Nvidia dominates the AI revolution. Can the chip maker stay on the packaging front?
Klein called the constant press coverage “thinking and stupid.” It separates the information from negative articles about Nvidia’s product delays or perceived design problems.
On January 7, Nvidia’s stock rose to 153.13 after Nvidia CEO Jensen Huang’s keynote speech at CES 2025.
From an all-time high at the start of CES to late Tuesday, Nvidia stock fell 14 percent. But the news media “makes it feel like a 25% drop in sales, highlighting the stock’s decline, now putting it in ‘correction territory’.”
“If you remove the CES increase to the low $150s, NVDA would probably be in the $140 range, so there’s almost no talk of a decline or selloff to $130 this week, 5%-6% more,” Klein said. .
He added, “Remember that Nvidia stock has basically been trading sideways in the $135-$140 range for three straight months. So the press and media should be calm. Since mid-October, Nvidia stock has been flat.”
Nvidia will try to restore the stock.
In afternoon trading on the stock market today, Nvidia shares rose 2.6 percent to 135.22. Heading into Wednesday, Nvidia stock has fallen for five straight trading sessions.
Klein says the daily news reports are “noise.” Most important for Nvidia stock will be what hyperscale cloud customers say about their 2025 capex spending plans in the coming weeks.
Nvidia’s stock gyrations in recent weeks are not surprising for such a high-profile artificial intelligence megatrend, he said.
“I met with Nvidia last week in Las Vegas and they don’t seem more concerned or challenged,” Klein said.
The AI chip maker is scheduled to report its fiscal fourth-quarter results on February 26.
Nvidia stock is on three IBD stock lists: Leaderboard; sector leaders and technology leaders.
Patrick Seitz at X, formerly of Twitter, at @IBD_PSeitz For more stories on consumer technology, software and semiconductor stocks.
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