Nvidia Stock Forecast: Is NVDA a Buy Before Earnings?

Nvidia (NVDA) has been at the center of the AI boom, reaching record highs in 2024 and early 2025. However, as the company prepares to report earnings on Feb. 26, investors are facing mixed signals.

• Bullish analysts see Nvidia as the leader in AI computing, with massive revenue growth and a strong pipeline of new chips.
• Bearish analysts worry that AI investments may not generate long-term profits, potentially leading to weaker demand for Nvidia’s chips.

So, is NVDA a buy, hold, or sell? Let’s break down the latest updates.

You can also read: DeepSeek: China's AI Challenger Reshaping the Industry

Why Some Analysts Are Bullish on Nvidia

Despite market uncertainty, some analysts remain extremely optimistic about Nvidia's future.

Massive AI Market Opportunity

• Loop Capital analyst Ananda Baruah sees a $1 trillion+ AI computing market, positioning Nvidia for sustained long-term growth.
• Nvidia’s AI chips (GPUs) are expected to dominate hyperscale data centers, with AI demand just beginning to accelerate.

Strong Earnings Growth

• Projected revenue for fiscal 2025: $128.6 billion (up 112% YoY).
• Projected revenue for fiscal 2026: $196 billion, assuming continued AI adoption.
• Key driver: Demand for Nvidia’s newest AI GPU, the GB200, which offers 30x faster inference speeds than previous models.

AI Infrastructure Spending Is Still Rising

• Google (Alphabet) CEO Sundar Pichai confirmed that AI demand is shifting toward inference workloads, which require even more GPU power.
• Google plans to spend $75 billion in 2025 on AI and data center infrastructure—up from $52 billion in 2024.
• Other tech giants like Microsoft, Meta, and Amazon are also increasing AI spending.

This suggests that, despite concerns, AI demand is still strong, and Nvidia remains a core player in this market.

You can also read: Stargate A.I.: Oracle, OpenAI, Nvidia Collaborate

Why Some Analysts Are Bearish on Nvidia

While Nvidia is still leading the AI chip market, some experts believe NVDA stock could drop after earnings.

Uncertainty About AI ROI

• AI companies like Microsoft, Meta, and Amazon are spending billions on Nvidia GPUs, but will these investments pay off?
• If AI fails to generate sustainable revenue, demand for Nvidia chips could drop significantly.
• DeepSeek’s AI model showed that high-end GPUs may not be needed for AI training, raising concerns about future demand.

Overvaluation and Investor Expectations

• NVDA stock trades at 40x expected 2025 earnings, meaning investors are pricing in rapid future growth.
• If Nvidia misses revenue expectations or gives weaker guidance, the stock could plunge.
• Some analysts warn that "peak Nvidia" could be near, similar to the dot-com boom of the early 2000s.

Key Events That Could Impact Nvidia Stock

• Nvidia Q4 Earnings Report (Feb. 26, 2025): Stock could rise or fall based on AI revenue growth
• Nvidia GTC Conference (March 17, 2025): New product announcements could boost investor confidence
• Federal Reserve Decision on Interest Rates (March 2025): Higher rates could pressure high-growth tech stocks like Nvidia

Investors should watch Nvidia’s earnings guidance closely—any sign of slowing AI demand could lead to a sell-off.

Looking Ahead: Should You Buy Nvidia Stock Now?

Nvidia remains the AI leader, but the stock faces short-term risks. Here’s what investors should consider:

• Bullish Case: If AI spending continues and Nvidia exceeds earnings expectations, NVDA stock could rally to new highs.
• Bearish Case: If companies cut AI spending or Nvidia misses guidance, NVDA could drop sharply after earnings.
• Long-Term Outlook: Nvidia is still one of the most important companies in AI, but investors should expect volatility.

For long-term investors, any short-term dip could be a buying opportunity. However, those with shorter time horizons may want to wait until after the earnings report before making a decision.

You can also read: The AI Chip Race: Can AMD, Google, and Amazon Catch NVIDIA?

FAQs

When does Nvidia report earnings?

Nvidia will report Q4 2025 earnings on Feb. 26, 2025.

Why are some analysts bearish on Nvidia?

Concerns about AI demand, rising competition, and overvaluation have some experts warning of a potential NVDA stock drop.

What is Nvidia’s latest AI chip?

Nvidia’s GB200 AI GPU is its most advanced model, offering 30x faster AI inference than previous chips.

Will Nvidia stock keep going up?

It depends. If Nvidia exceeds expectations, it could reach new highs. However, if AI demand slows, the stock could decline after earnings.

Is Nvidia stock a buy right now?

Long-term investors may see any dip as a buying opportunity, but short-term traders should watch the earnings report closely before making a move.

Stay tuned for more updates on GetJar!