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Will NVIDIA’s Momentum Continue?

Bryce TuoheyAvatar
Written by Bryce Tuohey Reviewed by Tim Sykes Fact-checked by Matt Monaco
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NVIDIA Corporation’s stocks are likely pressured by concerns over weakening demand in the gaming sector, impacting investor sentiment. On Thursday, NVIDIA Corporation’s stocks have been trading down by -3.41 percent.

Core Updates:

  • Recent scrutiny reveals potential violations by NVIDIA involving possibly deceptive practices related to AI chip exports, with fears of buyers circling controls, drawing concerns from regulators.
  • Comments from Summit Insights express unease as NVIDIA was downgraded from “Buy” to “Hold.” There’s growing apprehension around high market expectations against rising risks, despite competitive advantages.
  • A Singapore fraud case included U.S.-made servers with NVIDIA’s advanced chips, broadening concerns about chip distribution and related regulations.
  • Ambitiously high investor expectations hit a snag after NVIDIA’s earnings report, suggesting it fell short of customary surprises, with shares tumbling over 7% recently.
  • A legal altercation sees NVIDIA at loggerheads with EU antitrust authorities over a probe into the proposed acquisition of AI firm Run:ai, adding further complexity to its strategic moves.

Candlestick Chart

Live Update At 09:18:06 EST: On Thursday, March 06, 2025 NVIDIA Corporation stock [NASDAQ: NVDA] is trending down by -3.41%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Overview of Recent Earnings and Financial Metrics:

As millionaire penny stock trader and teacher Tim Sykes, says, “The goal is not to win every trade but to protect your capital and keep moving forward.” In the volatile world of trading, it is crucial for traders to focus on preserving their capital rather than chasing every potential win. By prioritizing capital protection, traders can ensure they stay in the game and continue to make informed decisions, adapting to the ever-changing market dynamics.

Through the latest earnings, clues about NVIDIA’s fiscal health emerge. With gross profit margins sitting around 75%, they suggest a hefty cushion compared to others in the tech landscape. Revenue reached $39.33B; however, the shimmer of top-line growth was overshadowed by revenue missing the hype of analysts’ customary high bar, hence, mid-week saw herd-like investor sell-offs. This marks NVIDIA’s smallest revenue beat in two years, as reported by several commenters. In spite of this, a basic earnings per share (EPS) of $0.9 still records some positive streaks.

Key ratios present mixed signals, with a pre-tax profit margin of 51.3% demonstrating robust efficiency, but the price-to-earnings (P/E) ratio hovering over 39 raises eyebrows about potential overvaluation. While return on equity is strong at 64.44%, showcasing a solid track for generating profit with each dollar of shareholders’ equity, market players stay cautious.

With balance sheets revealing total assets of approximately $111.6B, the current ratio of 4.4 gives breathing room. Yet, as changes in cash illustrate a tumble, down $518M from prior positions, the watch is on for how well cash flow can buoy operations, given the industry flux.

Interpreting NVIDIA’s Journey in the Current News Climate:

Concerns Over Probes:

News unveils an investigation by authorities linked to NVIDIA’s past communications about compliance with U.S. export stipulations, creating tremors around investor confidence. Such actions call into question the ethical bounds of high-tech innovations and navigation through U.S. legalese, especially for a company with NVIDIA’s stature and influence.

Downgrades and Decision Dynamics:

With Summit Insights opting to cool expectations by downgrading NVIDIA to a holding pattern, investor circles ruminate on risk-reward balances. Though NVIDIA reigns in product leadership and rides a wave of datacenter capex growth, skeptic eyes observe poignantly: Could the mounting foray into the PC Client MPU market expand risks faster than it amplifies rewards?

More Breaking News

Strategic Scrutiny:

Reflecting regulatory eyes on the RTX technology giant due to antitrust concerns demonstrates the tightrope NVIDIA walks with acquisitions. While securing Run:ai could enhance NVIDIA’s edge, friction from bureaucratic hurdles complicates the pace of its innovation narrative.

Earnings Fallout:

The fallout from lukewarm quarters is palpable, illustrating the jitteriness inherent in tech stocks when they don’t soar past projections. It cues stakeholders into broader tech sector ebbs and flows. As NVIDIA navigates this turbulent sea, financial plays remain ensconced in heightened whisperings of volatility. As millionaire penny stock trader and teacher Tim Sykes, says, “Cut losses quickly, let profits ride, and don’t overtrade.” This wisdom resonates deeply within the trading community, especially for those monitoring NVIDIA’s performance closely.

As the narrative unfolds, NVIDIA’s fiscal voyage forwards bracing through multifaceted challenges while keen eyes track bursts of innovation anew. Whether NVIDIA’s momentum will continue or fizzle out, remains the burning question across tech landscapes. Traders looking to make informed decisions are keenly aware of the need to adopt strategies that align with dynamic market conditions, similar to Sykes’ advice.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

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Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”