- Nvidia’s blowout quarter has reignited confidence in AI spending.
- Guidance crushed expectations — but the stock’s muted reaction tells a deeper story.
- Beneath the surface, a group of battered tech names may now be set for a sharp rebound.
’s results released last night exceeded expectations, and the company also delivered stronger-than-expected guidance for the coming quarters.
The company reported a 73% increase in revenue for the fourth fiscal quarter, reaching $68.13 billion, above analysts’ expectations of $66.21 billion.
It also issued an optimistic forecast, projecting revenue of $78 billion for the first fiscal quarter, well above analysts’ expectations of $72.6 billion.
Investors had been concerned that the sharp increase in AI hardware spending was unsustainable, fueling fears of a bubble in the sector, but Nvidia’s results have helped ease those concerns.
However, these positive results had been partly anticipated. Nvidia gained 1.41% on Wednesday, reaching a four-month high, while the Nasdaq closed up 1.26%. This partly explains why the market’s reaction to Nvidia’s earnings after the close remained moderate.
The stock initially rose more than 4%, but then gave up those gains and was trading flat at the time of writing. It should be noted that, in addition to the fact that the strong results had already been priced in, concerns about a potential conflict between Iran and the United States also weighed on the market.
Nevertheless, Nvidia’s results clearly show that spending on AI continues unabated, which is a positive sign for the entire sector, including software stocks.
Indeed, software stocks have suffered in recent weeks amid fears that AI could render their services obsolete. However, Nvidia CEO Jensen Huang explained on the sidelines of the earnings presentation that investors’ concerns are misguided.
“I think the markets have got it wrong,” Huang told CNBC, dismissing fears that AI agents would cannibalize the enterprise software sector. On the contrary, he expects many software publishers to use agentic AI to enhance their products and improve efficiency.
In other words, Nvidia’s results confirm that technology stocks remain an attractive opportunity for the coming months, including software stocks, which Huang believes are still potential winners despite current concerns.
This could help several stocks that have fallen in recent weeks return to a positive trajectory.
7 Struggling U.S. Tech Stocks That Could See a Massive Rebound
We therefore turned to the Investing.com Screener to identify struggling tech stocks with strong rebound potential.
Here are the specific criteria we used:
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Market capitalization greater than $10 billion
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Decline of more than 20% over one month
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Upside potential of more than 25% according to InvestingPro Fair Value
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Upside potential of more than 25% according to analysts’ targets
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Overall health score above 2.5/5
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Cash flow health score above 2.5/5
This research enabled us to identify 7 opportunities.
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More specifically, these U.S. tech stocks, which have fallen by 22.8% to 31.8% over the past month, are now undervalued by 33.1% to 56.7% according to InvestingPro’s Fair Value. Analysts, meanwhile, see upside potential of 31.4% to 98.8% in these stocks.
Finally, note that there are many other ways to find the best stocks to buy right now, including preconfigured searches that allow you to screen for stocks meeting a specific set of criteria with just one click.
There are searches focused on themes such as “value,” “growth,” “quality,” and “defensive,” among others, allowing investors of all profiles to find stocks that align with their strategy:
Please note: Some searches are reserved for InvestingPro subscribers with a PRO+ plan.
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Disclaimer: This article is written for informational purposes only. It is not intended to encourage the purchase of assets in any way, nor does it constitute a solicitation, offer, recommendation or suggestion to invest. I would like to remind you that all assets are evaluated from multiple perspectives and are highly risky, so any investment decision and the associated risk belong to the investor. We also do not provide any investment advisory services.
