Nvidia Stock Fluctuations Are Just Noise According to Analyst

Nvidia stock has been making headlines, but a Wall Street analyst says the media is focusing too much on small daily changes rather than the bigger picture.

Jordan Klein, an analyst at Mizuho Securities, believes that news outlets often overanalyze Nvidia’s stock moves, creating unnecessary drama around minor fluctuations.

Klein pointed out that after Nvidia’s stock hit a record high of $153.13 on January 7, excitement over a CES keynote speech by CEO Jensen Huang caused a temporary spike.

However, the stock then fell by 14%, and the media made it seem like a much bigger deal than it was. Klein argues that if you ignore the spike, the drop would have been closer to 5-6%, not enough to warrant such intense coverage.

He also noted that Nvidia’s stock has been steady between $135 and $140 for the past three months, and that the recent movements are just “noise.”

Klein suggests that the focus should be on Nvidia’s long-term outlook, especially as the company prepares for its fiscal fourth-quarter results on February 26.

In the coming weeks, Nvidia’s performance will likely depend on what big cloud companies say about their spending plans for 2025.

Klein believes that the real story is how Nvidia continues to lead in the artificial intelligence space, not the daily ups and downs of its stock price.