‘Good News’ Is Coming for Nvidia Stock, So Buy NVDA Shares Here

Core Insights - Nvidia's valuation is significantly high, with a price/sales (P/S) ratio of 28 and a price/book (P/B) ratio of 46, both well above sector medians, but its forward revenue growth is projected at 68%, justifying this premium [1] - Nvidia shares have increased by 35% year-to-date in 2025, driven by soaring AI demand, and the stock has recently pulled back slightly from its peaks [2] - The company has expanded aggressively through key partnerships and major chip supply deals, solidifying its position as a leader in AI and advanced computing [3] Financial Performance - Nvidia is expected to report earnings of $1.25 and revenue of $54.83 billion for Q3 2026, representing a 56% increase year-over-year [8] - For Q4, revenue is forecasted at $61.88 billion, with data center sales nearing $56 billion, driven by the Blackwell platform [9] - Nvidia's CEO announced combined orders of $500 billion for 2025-26, indicating potential revenue growth exceeding previous expectations by up to $60 billion [11] Market Sentiment - Analysts are optimistic ahead of Nvidia's quarterly report, with expectations of strong performance driven by hyperscaler spending and demand for the Blackwell platform [5][14] - The consensus rating for Nvidia is a "Strong Buy" from 47 analysts, with an average 12-month price target of $225, suggesting a 21% upside potential [16] - Despite the overall bullish sentiment, one analyst has issued a "Strong Sell" rating, citing concerns over potential market bubbles and supply chain constraints [16]