Should You Buy Nvidia Stock Before Earnings?
Key Points
Tech stocks, including Nvidia, are undergoing turmoil as Wall Street reevaluates artificial intelligence.
Nvidia continues to impress, as its fiscal fourth quarter forecast for substantial sales of $65 billion illustrates.
The semiconductor giant's sales to China are set to resume in 2026.
- 10 stocks we like better than Nvidia ›
Tech stocks have experienced upheaval in 2026 as Wall Street reassesses the impact of artificial intelligence. AI chip leader Nvidia (NASDAQ: NVDA) is among the casualties, with shares down from the 52-week high of $212.19 reached in October.
Does this present a buy opportunity, ahead of the company's Feb. 25 earnings announcement for its fiscal fourth quarter ended Jan. 25? In short, yes, now is an opportune time to pick up shares, and here's why.
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Image source: Nvidia.
Despite Wall Street's growing wariness over AI, Nvidia is in a unique position to benefit as the industry evolves. This is due to several factors, including its comprehensive platform for building AI systems that combine potent semiconductor hardware with its proprietary CUDA software.
The company's CEO, Jensen Huang, sees AI as a technology shift that will unfold over years, suggesting the sector hasn't reached its apex. Huang noted that "The world has a massive investment in non-AI software," which will now need to transition to the advanced tech required to support artificial intelligence.
As proof of this, Nvidia forecasted fiscal Q4 sales of $65 billion, a spectacular increase from the prior year's record revenue of $39.3 billion. This staggering sum suggests that AI demand isn't slowing down.
The Q4 forecast assumed no sales to China, and since then, Nvidia was given government go-ahead to commence selling to the Chinese market. So, the semiconductor chip leader's 2026 quarterly sales could exceed its lofty Q4 total.
In addition, Nvidia is forging key partnerships, such as its $5 billion investment in Intel that can help with manufacturing its 2028 semiconductor chips. These collaborations deepen Nvidia's influence across the AI industry.
Moreover, Nvidia's compelling valuation, as evidenced by its forward price-to-earnings ratio, suggests now is the time to buy.
Data by YCharts.
The stock's forward earnings multiple has dropped to levels not seen since the Trump administration's tariff policies caused the stock market turmoil last April. With an attractive valuation and a bright future ahead, now is a good time to buy Nvidia stock.
Should you buy stock in Nvidia right now?
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Robert Izquierdo has positions in Intel and Nvidia. The Motley Fool has positions in and recommends Intel and Nvidia. The Motley Fool has a disclosure policy.
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