Should Investors Buy Nvidia Stock Before Feb. 25?

Core Viewpoint - Nvidia has shown strong performance in 2025, with its stock rising 38%, significantly outperforming the S&P 500 index, raising questions about its ability to maintain this momentum in 2026 amidst ongoing competition and spending concerns [1]. Financial Performance - Nvidia is set to report its fourth-quarter earnings for fiscal year 2026 on February 25, with an average earnings-per-share (EPS) estimate of $1.52, reflecting a 71% increase year-over-year. Revenue is projected at $65.47 billion, marking a nearly 66.5% year-over-year increase [2]. Market Focus - Investors are expected to scrutinize AI demand trends, particularly whether it is peaking or accelerating, as Nvidia stands to benefit significantly from increasing AI demand. Key indicators will include sales and backlogs for its latest chip model, Blackwell [4]. - The company's gross margin, which was approximately 73.4% in the previous quarter, will be a critical metric for assessing pricing power and market share. Any decline in this figure could raise concerns, while increases may be positively received [5]. Product Development - Investors are likely to seek updates on Nvidia's next chip model, Vera Rubin, and insights into agentic AI, which CEO Jensen Huang discussed at a major industry conference earlier this year [6]. Market Expansion - An update on Nvidia's efforts to reopen chip sales in China will be of interest, as the company has been selling older chips to comply with U.S. government restrictions. Previous sales were halted due to trade tensions and export restrictions, but recent lobbying efforts suggest a potential reopening of these sales channels, which could significantly impact revenue [8].