NVDA Stock Before Q4 Earnings: Should You Buy Now or Wait for Results?
From Nasdaq: 2025-02-21 08:29:00
NVIDIA Corporation (NVDA) is set to report fourth-quarter fiscal 2025 results on Feb. 26. For the fiscal fourth quarter, the company expects revenues of $37.5 billion. The Zacks Consensus Estimate is $37.72 billion, indicating a 70.7% increase from the year-ago figure. NVIDIA’s earnings have surpassed estimates in the past four quarters, with an average surprise of 9.8%.
Analysts are not predicting an earnings beat for NVIDIA this quarter. The Datacenter business is expected to drive fourth-quarter revenues, with strong demand for generative AI and large language models using NVIDIA’s GPUs. The Gaming and Professional Visualization segments are also expected to show growth. NVIDIA’s stock has outperformed its industry peers, with a forward P/S ratio of 17.75X.
NVIDIA’s revenue growth has been driven by demand for chips for generative AI model development. The global generative AI market is expected to reach $967.6 billion by 2032, with a CAGR of 39.6%. NVIDIA’s AI chips are top choices for building and running powerful AI applications. The company’s strong product portfolio and leadership in AI make it a compelling investment opportunity.
While NVIDIA’s stock has a premium valuation, its consistent financial performance and growth prospects in sectors like automotive and healthcare justify the premium. The company’s leadership in AI and innovation position it for sustained long-term growth. Investors should consider leveraging NVIDIA’s potential for growth in emerging sectors.
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