The Deepseek Dip is almost over Nvidia(Nasdaq: NVDA). Of course I refer to the stock price of Nvidia that lasted last month when many investors panicked about the threat presented by the Chinese artificial intelligence (AI) Company Deepseek. Although the shares of Nvidia fell no less than 21% under the previous high, the majority of that loss has evaporated.
But although it is too late to buy Nvidia on the dip induced by Deepseek, another potential catalyst sounds. The GPU maker is planned to announce his tax 2025 results in the fourth quarter and the full year later this week. Do you have to buy NVIDIA -SELEPHAND FUIST before 26 February?
People who worry about whether they should buy Nvidia shares in the next three trading days can focus on whether there is a good possibility that the Nvidia share price will jump after the market after the market on 26 February after the Q4 update.
History indicates that there could be a leap after the win. Especially after the launch of OpenAi van Chatgpt in November 2022, Nvidia has a great track record in the profit expectations of Wall Street. And the share price was then often performed.
NVDA -data by YCHARTS
The “E’s” on the above graph show when Nvidia reported its quarter of income. After six of those nine updates, the stock rose afterwards. However, astute readers will notice that the shares of Nvidia did not rise immediately after the two most recent quarterly updates.
The short answer to this question is that there is no way to know for sure. However, we can make a well -trained gamble.
Firstly, it is important to understand what is needed for Nvidia to beat Wall Street’s expectations. The average estimate of the income of Q4 of analysts investigated by LSEG is $ 38.13 billion. The estimate of the average profit per share (EPS) is $ 0.85. To achieve these figures, NVIDIA must yield a revenue growth of approximately 72.5% and an EPS growth of 63.5%.
Nvidia could surpass the estimates of analysts, even with delaying growth. The company reported revenue growth on an annual basis of 94% in the third quarter of the tax 2025 and the growth of 103%. The Q4 guidelines of management projects of $ 37.5 billion, plus 2%. Nvidia will have to be at the top of the range to perform better than Wall Street expected.
To make the stock jump enough to buy the hand over fist before the Q4 update, however, Nvidia cannot only scrape past with an income and income beat. It will either have to exceed estimates and/or have to offer a particularly encouraging outlook for tax 2026. Can the company do this? I think the opportunities for three important reasons are pretty good.
First, Nvidia CFO Colette Kress said in the company’s Q3 win of the company: “Blackwell -question is amazing.” She added that Nvidia was on schedule to exceed the earlier estimate of the income for the new GPU chips, although it could not keep track of the question.
Secondly, several of the largest customers of Nvidia have revealed in recent weeks that they continue to invest heavily in AI infrastructure. Amazon” MicrosoftGoogle Parent AlphabetAnd Meta platforms Sing all from the same page in their last quarter updates. That is a good omen for Nvidia.
Third, those major customers do not come Advanced micro devicesNvidia’s primary rival. AMD reported strong revenue growth earlier this month, but lower than expected.
I will not be surprised if Nvidia beats the Q4 estimates of Wall Street and offers strong prospects, with its shares that pop when the market opens on 27 February. But investing is not about the short term or trying to jump in and out in and out of shares for a certain movement. The long -term question is: Can the momentum of Nvidia continue for much longer?
Some believe that the answer to that question is ‘no’. They point to the appreciation of Nvidia (acting shares with 32.6 times forward income). They predict that the demand for AI chips will decrease, perhaps partly due to more efficient models such as Deepseeks that require fewer GPUs.
I am more optimistic, albeit cautiously. My premonition is that the progress in AI will stimulate a greater demand for Nvidia’s chips instead of leading to a lower demand. I also expect that Nvidia will continue to innovate the competition.
Of course, the momentum of Nvidia will eventually slow down. It is inevitable. However, buying the stock before 26 February is probably a smart move, in my opinion. Even if you do not invest in Nvidia by that time, the shares can still have enough room to run afterwards.
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John Mackey, former CEO of Whole Foods Market, a subsidiary of Amazon, is a member of the board of directors of the Motley Fool. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and Sister of Meta Platforms CEO Mark Zuckerberg, is a member of the Motley Fool’s Board of Directors. Suzanne Frey, a director of Alphabet, is a member of the board of directors of the Motley Fool. Keith Speights has positions in alphabet, Amazon, Meta platforms and Microsoft. The Motley Fool has positions and recommends Advanced Micro Devices, Alphabet, Amazon, Meta Platforms, Microsoft and Nvidia. The Motley Fool recommends the following options: Lang January 2026 $ 395 calls on Microsoft and short January 2026 $ 405 calls on Microsoft. The Motley Fool has a disclosure policy.
Do you have to buy NVIDIA -SELEPHAND FUIST before 26 February? was originally published by the Motley Fool
