Nvidia (NASDAQ: NVDA) is the backbone of the AI economy. The company’s earnings don’t just affect its own investors; they ripple throughout the industry both in the U.S. and worldwide. Nvidia is set to release its fourth-quarter 2026 earnings on Feb. 25. So, should you buy the stock now or wait and see what happens? Let’s have a look.
Nvidia’s core businesses have driven explosive growth, expanding margins, and an absolutely dominant market share. Nvidia provides customers with critical AI infrastructure, and demand for its GPUs and other core products isn’t likely to slow anytime soon.
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Buying Nvidia before earnings isn’t so much about expecting a price pop if the company once again exceeds expectations. Instead, investors should care about the longer-term prospects and underlying fundamentals. For example, last quarter, even though Nvidia beat Wall Street’s revenue expectations, the stock still slid about 3% almost immediately following. Yet, when we look at a longer time frame, we see Nvidia’s stock is up over 40% in the past 12 months, and in the past five years, the stock has risen a whopping 1,230% as of Feb. 6.
Nvidia’s financials remain quite strong. As of last quarter, the AI company reported record revenue of $57 billion. That’s a 62% increase from the previous year. Nvidia’s GAAP-adjusted gross margins were also an impressive 73%. Looking ahead to this quarter’s forecast, Nvidia anticipates revenue jumping to $65 billion and margins increasing to 74%.
As far as the company’s balance sheet, Nvidia is sitting on about $61 billion in cash and marketable securities. The AI leader only has $42 billion in total liabilities. Nvidia’s economic moat is powerful. So even if an industry pullback occurs, Nvidia has positioned itself to withstand in the long term.
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The biggest threat to Nvidia right now is if its customers slow their…
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