Core Viewpoint - Nvidia's stock has faced pressure recently, but strong upcoming results and growth prospects could lead to a significant rebound in its share price [1][2][3]. Financial Performance - Nvidia is set to release its fiscal 2026 fourth-quarter results on February 25, 2026, and has consistently exceeded consensus earnings estimates in the past four quarters [5]. - Analysts expect a 67% increase in Nvidia's revenue for fiscal Q4 to $65.5 billion, with earnings projected to jump by 71% year-over-year [7]. - Nvidia's guidance does not account for potential sales to Chinese customers, which could further impact results [7]. Growth Projections - Earnings growth for Nvidia is forecasted to accelerate to 63% in fiscal 2027, up from 57% last year, driven by the launch of next-generation Vera Rubin data center graphics cards [8]. - The Vera Rubin chip systems are expected to significantly reduce AI inference costs, potentially boosting sales [9]. Investment Opportunity - Nvidia's stock is currently trading at 24 times forward earnings, which is a discount compared to the Nasdaq-100 index's forward earnings multiple of 26, making it an attractive buy [10]. - Analysts have set a 12-month median price target of $250 for Nvidia, indicating a potential 35% increase from current levels, with expectations for even larger gains due to strong revenue prospects [11].
Prediction: This AI Stock Will Soar After Feb. 25. Here's Why.