Nvidia has delivered impressive revenue growth for nine straight quarters and will report the next quarter's earnings on Nov. 19.
However, tech investors have become concerned about high valuations and the possibility of an AI bubble.
Nvidia (NASDAQ: NVDA) will report earnings for the third quarter of its 2026 fiscal year on Nov. 19. Recent earnings reports have had good news for investors, as the chipmaker's year-over-year revenue growth has topped 50% for nine straight quarters.
This often (but not always) leads to an uptick in Nvidia's share price. Does that mean you should pick up some shares before the next earnings release? Let's find out.
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Image source: Nvidia.
The conversation surrounding artificial intelligence (AI) spending has changed since Nvidia's last earnings release. There's debate about whether we're in an AI bubble, and investors are wary about inflated valuations of popular AI stocks. On that note, Nvidia currently trades at an expensive 54 times trailing sales. It also tops the list of the largest companies by market cap, with a value of $4.6 trillion (as of Nov. 7).
Even if Nvidia has another great quarter, the macroeconomic climate and its high valuation could outweigh that. I wouldn't recommend buying Nvidia stock now solely with the hopes that it jumps after earnings.
Don't get me wrong -- I still think Nvidia is a good investment. It's the market leader for graphics processing units (GPUs), and its chips are in high demand. But stocks, particularly tech stocks, can be volatile over short time periods. It's better to take a long-term perspective than to put all your expectations onto a company's next earnings report.
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Lyle Daly has positions in Nvidia. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.