Nvidia Retail Traders Sour Ahead of Q4 Earnings Report
Nvidia's stock has seen a shift in sentiment among retail traders ahead of its Q4 earnings report, with many becoming more bearish. The company is set to finalize a $30 billion investment in OpenAI, replacing an earlier reported $100 billion deal.
According to Stocktwits, the sentiment toward NVDA slid to 'extremely bearish' before ticking up to 'bearish'. This comes as market sentiment remains mixed due to AI slowdown fears and escalating U.S.-Iran tensions. The S&P 500 index declined 0.3% on Thursday.
Nvidia's earnings have become a marquee quarterly event, shaping investor sentiment around artificial intelligence and the broader tech sector. Analysts expect Nvidia's fourth-quarter revenue to rise 67% to $65.69 billion, with adjusted earnings increasing to 71% to $1.53 per share.
Some retail investors attribute the weakness in NVDA stock to a lack of momentum, while others point to manipulation by whale investors. However, analysts at RBC Capital Markets believe Nvidia is set for a 'solid' earnings quarter driven by backlog growth and the Rubin GPU ramp.