Should You Buy Nvidia Stock Before Its Next Earnings Report?

Nvidia (NASDAQ: NVDA) will post its earnings report for the first quarter of fiscal 2027 (which ended on April 26) on May 20 after the market closes. Many investors will be closely watching this report, since Nvidia is a bellwether and linchpin of the booming AI market. Should you invest in Nvidia, which has rallied more than 60% over the past 12 months and is hovering near its record high, before that report?

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What are investors expecting from Nvidia?

Nvidia is the world's leading producer of discrete GPUs. Most of the world's largest AI companies are using its data center GPUs to train their large language models (LLMs) and algorithms. It also locks in those clients with its proprietary software and services.

Nvidia has easily beaten analysts' top- and bottom-line estimates over the past year, but its stock has declined in three of the four quarters in the day after the earnings release. That profit-taking pattern isn't surprising, but investors who exited Nvidia after those earnings reports left a lot of money on the table over the past year.

Analysts expect Nvidia's revenue and EPS to grow 73% and 67%, respectively, in fiscal 2027 -- and its stock still looks cheap at 27 times this year's earnings. Therefore, if you expect all of that AI capex from the top hyperscalers to keep boosting Nvidia's revenue and profits -- and you plan to hold its stock for a few years instead of a few quarters -- it won't matter if you buy it before or after its next earnings report.

Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.