It has certainly been a troubling year for the US stock market. With tariffs and talk of a trade war brewing, a host of companies have gotten off to a slow start to the year. However, one of the world’s biggest companies could be preparing a turnaround. Indeed, Nvidia (NVDA) stock may be set to reverse its 16% fall from its January high of $150 with some big news surfacing Wednesday.

The company has struggled with a host of bad news coming to the forefront in the last several weeks. From the arrival of DeepSeek AI to questionable tariffs that could impact business, a record Q4 earnings data was not enough to save the stock. But something could be coming, that is.

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Nvidia May Be Set to Turn Around Stock Price Drop Amid Tumultuous 2025

There was no shortage of reasons for investors to be excited about Nvidia entering the year. The company had increased more than 170% in 2024 and expected much of the same. However, we predicted that its stellar earnings data released last week would fall on a muted response. With the bar continually raised, its performance has ceased impacting the overall stock price.

That could be set to change in the near term. Indeed, Nvidia (NVDA) could be preparing to turn around its 16% drop with some big news surfacing that could help it get there. Specifically, the company’s CEO, Jensen Huang, unveiled some major updates that could propel the stock.

Also Read: Nvidia (NVDA) Sets Earnings Record, So Why Hasn’t The Stock Followed?

Huang confirmed that the company is scaling Blackwell production. This is because demand for the product remains incredibly high. Indeed, companies relying on Nvidia to support their AI spending range from Meta, which is investing upwards of $65 billion, to Amazon (AMZN), which is set to invest $100 billion.

However, that isn’t where the excitement ends. There is an ever-present shift taking place in AI. Specifically, companies like OpenAI are shifting their focus, as they’ve found the recent process of feeding AI models information is not working as well as it could. Therefore, they are now turning their attention to “reasoning” models that do more thinking.

In the most recent investor call, Huang noted that reasoning models consume 100 times more computing than previous models. Therefore, in the future, some models could only get larger with time. This could be huge for NVidia, as they could be set to see increased demand for new chips that support this new wave of products. All of which will see the AI chipmaker at the forefront.