Investors await Nvidia's February 25 earnings: will the AI bubble burst
On February 25, Nvidia is set to release its ROI figures, a crucial event for investors and the AI-driven market. There is growing apprehension as Nvidia's current metrics appear underwhelming, prompting doubts about the sector's rapid growth prospects.
Source Medium
The Nvidia CEO, popularly dubbed the "uncle in the leather jacket," has been giving numerous interviews over recent months, promising endless stock growth while trying to calm mounting concerns about the company’s profitability. Investors increasingly recognize that AI adoption does not necessarily make software companies wealthier, as free tools and alternatives gain traction in the market.
This creates a vicious cycle: losing customers reduces investments in cloud services, which in turn diminishes demand for Nvidia chips. Market attention is now firmly fixed on the company's leader—if Nvidia cannot capitalize on the AI "gold rush," the industry could face serious setbacks. Moreover, a general fatigue toward inflated AI expectations is noticeable among everyday users, affecting market dynamics as well.
