Analyst: Nvidia is grappling with the "curse of high expectations."

Analysts are divided on Nvidia's stock price ahead of its earnings report, with some predicting a pop and others warning of a bubble. Jeff Sica of Circle Squared Alternative says Nvidia is facing the "curse of high expectations" and that investors are expecting too much, and the company needs to blow away expectations to satisfy them. DeepSeek offers cheaper, more efficient technology that could prompt companies to cut capital spending, hurting Nvidia's business. Microsoft's cuts to data center spending have added to the market's concerns about Nvidia and made its stock price more vulnerable. Sica has sold some Nvidia shares. Analyst Jordan Klein of Mizuho sees a lot of off-the-books money waiting to get into Nvidia, and he believes the stock is more likely to go up than down. Nvidia's new Blackwell products are in high demand, and the company is ramping up production. Ben Reitzes of Melius Research says the competition between tech giants in AI is actually good for Nvidia, with strong hardware demand and likening Nvidia's hardware to a Ferrari, noting that companies like Elon Musk's xAI are very focused on Nvidia's chips. Nvidia management has suggested that demand for its new Blackwell products is far outpacing supply.