From Nasdaq: 2024-11-13 06:30:00

On Nov. 20, Nvidia will release its fiscal 2025 third-quarter earnings, a highly anticipated event in the tech world. The impact of the report, whether positive or negative, will be significant across the market. Investors are eager to see if the numbers match the hype surrounding the AI juggernaut. Is it the right time to buy Nvidia shares?

Nvidia’s revenue largely comes from GPUs sold to tech giants like Microsoft and Alphabet for AI infrastructure. These companies have ramped up capital expenditures to upgrade data centers, with Meta planning significant spending growth in 2025. Nvidia stands to benefit from this trend, as big tech continues to invest in AI infrastructure.

The imminent release of Nvidia’s Blackwell chips aligns with its annual upgrade cadence for AI chips. The delay in Blackwell’s rollout due to fabrication issues has not dampened enthusiasm, with a year-long waiting list already in place. The successful debut of Blackwell could solidify Nvidia’s position as a dominant player in AI chipmaking.

Historically, Nvidia’s stock has seen an average upward move of 7.2% in the week following earnings reports. While past performance is not indicative of future results, strong momentum prior to earnings has often led to positive stock movements. Investors should focus on long-term growth rather than short-term fluctuations in stock prices.

The Motley Fool Stock Advisor team recently identified the 10 best stocks for investors, with Nvidia not making the cut. Stock Advisor has a track record of outperforming the S&P 500, providing investors with valuable insights and stock picks. Consider investing in Nvidia as part of a diversified portfolio for long-term growth potential.



Read more at Nasdaq: Should You Buy Nvidia Stock Before Nov. 20? History Says This Will Happen.