Nvidia Investors Look to CEO Keynote to Keep Rebound Going

Nvidia’s CEO Speech to Determine Stock’s Fate

Shares of Nvidia are poised to gain or fall this week, depending on the message delivered by Chief Executive Officer Jensen Huang at the company’s GPU Technology Conference (GTC).

Huang’s speech, scheduled for Tuesday, March 18, will be crucial in determining the stock’s trajectory as investors weigh updates on the company’s Blackwell product line, gross margins, China, competitors, and growth. The fear is that Nvidia’s sales boom is peaking, and Huang’s speech may need to reassure investors that the company’s growth is sustainable.

Investors are looking for reassurance

Rhys Williams of Wayve Capital Management said, "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." He added, "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."

Nvidia’s stock has been under pressure

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, but the stock’s valuation is near the lowest in five years, according to data compiled by Bloomberg.

Uncertainty around tariffs and AI spending weighs on sentiment

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

Market skepticism

Alec Young, chief investment strategist at Mapsignals, said, "The market is very sceptical on the stock." He noted that 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."

Positive factors

Despite the concerns, there are positive factors in Nvidia’s favour. The company just reported earnings results that largely beat Wall Street’s expectations, and analysts covering the company expect revenue to grow 57% and earnings per share to increase 52% in fiscal year 2026.

Opportunity for reinvigoration

Matt Stucky, chief portfolio manager of equities at Northwestern Mutual Wealth Management, said, "If shares of Nvidia were trading at this multiple a few years ago, it would spell more possible downside risk than it does today." He added, "Nvidia has an opportunity to reinvigorate its shares if it can meet guidance – with solid results on Blackwell, gross margins creeping back up and strong future outlook signalling demand for the rest of the year."

Conclusion

Nvidia’s CEO speech will be a crucial moment for the company, as it looks to reassure investors about its growth prospects and sustainability. If Huang can deliver a strong message, the stock could see a rebound, but if not, the company’s valuation could continue to come under pressure.

FAQs

Q: What is the significance of Nvidia’s CEO speech?
A: The CEO speech will determine the stock’s trajectory, as it will provide updates on the company’s Blackwell product line, gross margins, China, competitors, and growth.

Q: What are investors looking for in the speech?
A: Investors are looking for reassurance that the company’s growth is sustainable and that the sales boom is not peaking.

Q: What are the concerns surrounding Nvidia’s stock?
A: Concerns include the company’s valuation, uncertainty around tariffs, and worries that planned AI spending may be reconsidered.

Q: What are the positive factors in Nvidia’s favour?
A: The company’s recent earnings results, expected revenue and earnings growth, and its position at the forefront of AI chips are positive factors.