Is Nvidia stock a ‘Buy' ahead of this week's earnings?

Core Viewpoint - Nvidia's stock performance ahead of earnings reports has shown volatility, with significant growth since late 2022 but uncertainty surrounding future earnings releases [1][2] Group 1: Stock Performance and Market Sentiment - Nvidia has experienced a $4.3 trillion growth since late 2022, but investing in NVDA stock before earnings reports has become risky due to past pullbacks following earnings releases [1] - The upcoming February 25, 2026 earnings report is expected to bring similar uncertainty, with NVDA shares trading flat since the beginning of the year [2] - Wall Street maintains a 'Strong Buy' rating for Nvidia, forecasting a 39.94% increase to $265.63 in the next 12 months, supported by strong revenue growth and a robust cash position [4][6] Group 2: Technological Dominance and Partnerships - Nvidia's technological leadership remains unchallenged, with its hardware consistently outperforming competitors, contributing to its strong position among corporate clients [6] - The company is reportedly finalizing a $30 billion investment in OpenAI, part of a larger effort by OpenAI to raise $100 billion at an $830 billion valuation [7] Group 3: Risks and Concerns - The $30 billion agreement with OpenAI raises concerns about the AI industry's profitability, as the deal appears less binding than initially reported [9][10] - There is uncertainty regarding demand for AI, with reports indicating that impressive user figures may not translate to sustainable growth, and OpenAI is projected to lose $14 billion in 2026 [11][12] - Customer concentration poses a risk, with three clients accounting for about half of Nvidia's income, which could impact future earnings guidance [13] - The memory shortage, termed 'RAMageddon,' may force Nvidia to reissue older chips, risking market share to competitors like AMD and Intel [14][15]