Nvidia (NASDAQ: NVDA) stock is back in the green in 2026 and the AI chipmaker is expected to pay its first dividend of the year later next month.
With the February 25 earnings report approaching, Wall Street experts made themselves busy with updating – or, more often, reiterating – their 12-month outlook for Nvidia (NASDAQ: NVDA) stock.
Nvidia stock has increased by approximately 40% over the last 12 months, yet currently trades at only 25x the estimated earnings for FY'27, a reasonable multiple in relation to its growth trajectory. As we near the end of FY'26 results (January fiscal year), investors face a critical question: Does this low valuation indicate a significant buying opportunity, or is the market accurately anticipating an upcoming cyclical peak?
As Nvidia heads into quarterly earnings on Wednesday, AI investors are seeking evidence that the chipmaker's profits are growing apace on the back of a $630 billion capital spending budget from Big Tech. But signs of risk to Nvidia's long-held dominance are also emerging from hyperscalers' plans to design their own cheaper AI chips.
NVIDIA Corporation is set to report Q4 earnings, with consensus expecting 68% YoY revenue growth and potential for a modest beat. NVDA's growth rate is slowing compared to prior years, and market enthusiasm has tempered despite continued AI hardware leadership and profitability. Recent news includes a scaled-back $30B investment in OpenAI and a strategic but lower-margin entry into the PC notebook SoC market.
The 2025 Q4 earnings cycle is slowly winding down, with the bulk of S&P 500 companies already delivering their results. It's been a strong period again concerning growth, with a decent number of companies also beating top and bottom line expectations.
Nvidia Corporation remains a Strong Sell due to deteriorating data center financing and shifting AI infrastructure needs. Private credit funding for data center GPU clusters is potentially drying up, with major projects unable to secure financing or facing long power grid delays. AI inference workloads are shifting demand toward CPUs, undermining NVDA's GPU-centric growth thesis and exposing the company to structural risk.
A lot is riding on this week's earnings report from Nvidia.
TSM, Micron and Supermicro are outpacing NVDA as AI-driven data center demand, chip shortages and margin gains power bold revenue and earnings forecasts.
NVIDIA (NASDAQ: NVDA | NVDA Price Prediction) has produced one of the most extraordinary wealth-creation runs in stock market history.
Nvidia Corporation is poised for blockbuster earnings, with a Buy rating and a $245 price target reiterated ahead of its report. Hyperscaler capex is surging, yet NVDA's stock lags due to investor fears of custom ASIC competition and perceived cycle peaking. NVDA's competitive edge lies in performance, supply chain, and TSMC capacity, with gross margins expected to rebound to 75%.
Chipmakers like Nvidia ( NASDAQ:NVDA | NVDA Price Prediction ) were the early winners in the artificial intelligence (AI) boom, as companies scrambled to acquire advanced processors for training and running AI models.