Should You Buy Nvidia Stock Before Feb. 25? Here's What History Says.

Core Insights - Nvidia is a key player in the AI economy, with its financial performance impacting both its investors and the broader industry [1] - The company is expected to release its fourth-quarter 2026 earnings on February 25, raising questions about whether to buy now or wait [1] Financial Performance - Nvidia reported record revenue of $57 billion last quarter, a 62% increase year-over-year, with GAAP-adjusted gross margins at 73% [4] - The forecast for the upcoming quarter anticipates revenue to jump to $65 billion and margins to increase to 74% [4] - The company has a strong balance sheet, holding approximately $61 billion in cash and marketable securities against $42 billion in total liabilities [5] Market Position - Nvidia holds a dominant market share in the AI infrastructure sector, with demand for its GPUs and core products expected to remain strong [2] - The company has seen significant stock performance, with a 40% increase over the past 12 months and a staggering 1,230% rise over the past five years [3] Investment Considerations - Investors are encouraged to focus on long-term prospects rather than short-term earnings fluctuations, as Nvidia's fundamentals suggest a bullish outlook for the coming years [10] - The current market cap of Nvidia is above $4 trillion, with a forward P/E ratio around 22, indicating a reasonable valuation for long-term investors [9] - A recent sell-off in tech stocks may present a buying opportunity for savvy investors [9] Risks - The primary risk for Nvidia is a potential slowdown in AI spending from its customers, particularly in data centers, which account for nearly 90% of its revenue [7]