Shares of Nvidia Corp., the chip-making giant at the core of the artificial-intelligence boom, have recovered — somewhat — from the hit they took during the market’s DeepSeek tantrum last month. But as the $3.4 trillion company prepares to report fourth-quarter results on Wednesday, Wall Street has other anxieties.

Evercore analyst Mark Lipacis said in a recent note that there are three reasons for the more cautious tone: 1) DeepSeek lowering AI demand in aggregate, 2) DeepSeek shifting AI compute cycles away from Nvidia GPUs and to ASICs [custom chips], and 3) Blackwell chip delays.

Nvidia is set to benefit from increased AI infrastructure spending. The company has created a wide moat through its CUDA software platform. Even after its strong performance in the past few years, the stock remains attractively valued.