Should You Buy Nvidia After Its Blowout Earnings Report? Here's What History Says.

Key Points

• Nvidia has delivered billions of dollars in revenue in recent years as the leader in the AI chip market.

• The company’s stock has soared in the quadruple digits over the past three years.

• 10 stocks we like better than Nvidia ›

Nvidia (NASDAQ: NVDA) has been one of the stock market's biggest winners over the past few years, thanks to its strength in one game-changing area: artificial intelligence (AI). The company is the world's No. 1 AI chip designer, generating billions of dollars in revenue from sales of these items along with related products and services.

What keeps Nvidia ahead is the power and efficiency of its chips, known as graphics processing units (GPUs), in a field where customers -- from tech powerhouses to savvy start-ups -- aim to reach their AI goals as quickly as possible. The idea is AI will save companies time and money and help them innovate better and faster -- so the technology could be a game changer for many.

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And this is why Nvidia stock has soared, climbing 1,000% over the past three years. All of this is great, but you might wonder if now, after Nvidia's latest blowout earnings report, is a good time to get in on the stock. Let's see what history has to say...

Image source: Getty Images.

Nvidia beats analysts' estimates

First, though, let's take a quick look at what Nvidia announced during the fiscal 2026 second quarter earnings report this past week. Nvidia blew past analysts' estimates, reporting a 56% increase in revenue to more than $46 billion and a 59% gain in net income to more than $26 billion. This is thanks to demand for the company's recently released Blackwell architecture and chip, a product that has even seen demand surpass supply.

Though Nvidia faced some challenges earlier in the year -- such as concerns about the impact of potential import tariffs and a restriction on sales of chips to China -- the situation has brightened in recent times. President Donald Trump earlier this month announced a 100% tariff on imported chips but said companies committed to building in the U.S. would be exempt. This is positive for Nvidia since the company announced a major investment in U.S. manufacturing a few months ago. As for China, the U.S. agreed to allow Nvidia to sell certain chips to China in exchange for 15% of sales in that country.

On top of this, Nvidia is progressing with the development of its next architecture, known as Rubin and set to release next year. So, there's reason to be optimistic about Nvidia's revenue and profit growth in the quarters to come.

How Nvidia stock has performed after earnings reports

But will the stock price climb in the weeks and months following this latest earnings report? A look at the previous eight earnings reports shows that in the five days of trading following the report, Nvidia shares climbed during four of those periods. But if we take a look at a longer period, for example stock performance in the six months following those reports, six of those times Nvidia stock climbed -- and each gain was in the double digits. So, over the past couple of years, Nvidia has a pretty good track record of delivering a win to investors following its earnings reports.

Does this mean you should rush to get in on Nvidia now, right after its latest earnings report? History suggests Nvidia will go on to gain in the coming months, but though history can offer us an idea of what may happen next, it isn't infallible. A dip in investor sentiment, even a small bit of disappointing news from the company, or an economic report or geopolitical event could weigh on stock performance at any point.

So, what's an investor to do? The answer is simple: Think long term. Take a look at Nvidia's prospects over the coming five years, and here, there's reason to be bullish. This AI chip giant has the market leadership, innovation, and financial resources to grow earnings over the long haul -- and that's why, no matter what history suggests may happen in the coming six months, it's a great idea to buy the stock now and hold on for a number of years.

Should you invest $1,000 in Nvidia right now?

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Adria Cimino 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.