Nvidia's Q4 Earnings and AI Dominance

Nvidia is set to deliver one of its most pivotal earnings reports yet, with investors watching closely to see if AI still has room to run or if the recent shake-up signals a turning point. The stock has been under pressure since Chinese startup DeepSeek unveiled an AI model that competes with US giants while using far fewer chips, triggering a $600 billion wipeout in Nvidia's market cap. While shares have recovered some ground, the key question remains: Is this just a bump in the road, or has Nvidia's dominance in AI computing started to crack? Wall Street is expecting Nvidia to post over $38 billion in revenue for the quarter—a staggering 73% jump from last year. The company's major customers, including Microsoft, Amazon, and Alphabet, have all reaffirmed their AI spending, reinforcing the idea that Nvidia's chips remain in high demand. But there are red flags. TD Cowen reports that Microsoft is canceling datacenter leases, raising questions about whether hyperscalers are starting to rethink their AI infrast