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Is Nvidia stock a buy ahead of next week's earnings?
Finbold· 2026-02-18 12:38
Core Viewpoint - Nvidia is expected to report strong earnings, with significant year-over-year growth anticipated in both earnings per share and revenue, driven by demand in the artificial intelligence sector [1][3]. Financial Performance - Analysts predict adjusted earnings of approximately $1.52 per share and revenue around $65.6 billion for the quarter ending January 25, 2026, representing a year-over-year growth of roughly 71% [3]. - The previous quarter's results showed adjusted earnings of $1.30 per share and revenue of $57 billion, which surpassed forecasts [3]. Product Development - A key focus for the upcoming earnings report will be the progress on the Blackwell architecture, which has been characterized by CEO Jensen Huang as experiencing exceptional demand [4]. - Production ramps and supply fulfillment for hyperscalers and enterprise clients are expected to significantly contribute to revenue growth [4]. Market Sentiment - Wall Street analysts maintain a 'Strong Buy' consensus on Nvidia, with 39 recent ratings indicating strong confidence in the stock [6]. - The average price target is set at $260.38, suggesting a potential upside of 40.77% from current levels [6]. Price Predictions - The highest price target among analysts is $352, while the lowest is $200, indicating a generally optimistic outlook despite a wide range of estimates [7]. - The projected upside reflects confidence in Nvidia's growth driven by demand for AI chips and data center solutions [7]. Potential Volatility - The wide gap between high and low forecasts suggests potential volatility related to earnings performance and broader market conditions [8]. - Elevated expectations mean that even strong results may not prevent stock price swings if forward guidance is disappointing, particularly concerning competition and supply-chain constraints [8].