NVIDIA (NASDAQ:NVDA) has had a turbulent start to 2025, with concerns over AI capital expenditure (CapEx) constraints and competition from DeepSeek weighing on sentiment. While the stock has cooled off from its explosive 2023 rally, long-term investors are still sitting on massive gains of 229% since November 2023.

Key Factors at Play

1. AI Spending Slowdown?

   • Analysts fear soaring CapEx in the AI sector may lead to budget tightening by major customers.
   • Companies like Meta (NASDAQ:META) and Amazon (NASDAQ:AMZN) have hinted at cost discipline regarding AI investments.

2. Earnings Report Looms

   • NVIDIA's Q4 earnings report is scheduled for Wednesday, making it a crucial moment for investors.
   • The market will be watching for data center growth, AI chip demand, and guidance for 2025.

3. Profit-Taking Considerations

   • AI-driven stock strategies have begun rebalancing away from NVIDIA, signaling caution.
   • If growth expectations fall short, short-term downside risk could emerge.

For investors tracking NVIDIA's financial performance, explore its Balance Sheet API for deeper insights.