Nvidia (NASDAQ:NVDA) experienced another stellar year, with investors in the top semiconductor maker seeing incredible stock price appreciation of roughly 180%. That’s more than 7-times the return of the S&P 500 over the past year, and one could argue that Nvidia’s return is a key reason why the overall index was up this much over the course of the year.
Key Points About This Article:
- February 26 is a big day for Nvidia, as that’s the date the company is set to report its Q4 earnings for fiscal year 2025.
- Here’s what investors can expect to see from this earnings report, and why Nvidia may be a buy heading into the print.
- If you’re looking for some stocks with huge potential, make sure to grab a free copy of our brand-new “The Next NVIDIA” report. It features a software stock we’re confident has 10X potential.
Now, moving forward, expectations vary widely with respect to where Nvidia could be headed in 2025 and over the longer-term. The company’s strategic AI investments in developing its own chips and suite of software and services has provided investors with a complete juggernaut in this space. Indeed, if there’s a company that can be viewed as a pure play on future AI growth, Nvidia is it.
The company briefly surpassed a $3 trillion market cap, competing with Apple for the top spot. And Nvidia’s CEO Jensen Huang emerged as a prominent Silicon Valley figure, engaging with tech leaders and world officials alike.
With Nvidia’s Blackwell AI chips ramping up, and expectations that growth could accelerate in 2025, investors will be paying even more attention to the company’s upcoming earnings reports. As it stands, February 26th is a big day because that’s when the company will next report earnings.
Let’s dive into what the expectations are, and why Nvidia could be a solid buy ahead of this report.
Why 2025 Could Be an Even Bigger Year for Nvidia
Nvidia really is one of (if not the) most iconic stocks in the market right now. Indeed, when most investors think of growth stocks, Nvidia is the option that’s most likely to come to mind. At least, it is for me.
That’s partly due to the fact that Nvidia’s recent growth has continued to blow away expectations, with Nvidia’s management team reporting extremely strong Q3 FY 2025 earnings. Despite these strong earnings, the stock did what it does sometimes and sold off as some investors sold the news. But continue higher Nvidia did, making new all-time highs late in the year and continuing to hover around these levels.
Whether this breakout year can continue will depend on a number of factors. The company’s key Blackwell chips which were really effectively launched in Q4 of this past year will ramp up, and investors will pay close attention to the forward mix of chip sales (given the price tag and margins of these particular chips). I think the company’s Blackwell offering will be the key story of the company’s upcoming earnings report, and any commentary or indication given around where these sales and earnings could be trending moving forward will be the key factor many investors hone in on.
In other words, if Nvidia can continue to show that it’s focus on innovation and the best-in-class high-performance chips translates into revenue and earnings acceleration for this company, it could be game on with respect to how high this stock heads in 2025.
Nvidia Looks Like a Buy in 2025
Nvidia’s stock price has been anything but boring in recent years. Yes, there have been some down years to speak of (let’s not talk about 2022). However, for the most part, investors have realized that AI is not only real, but a powerful revenue and earnings growth accelerator for companies like Nvidia. So, as long as the narrative around AI remains roughly the same in 2025 and orders continue to pick up for the company’s massive Blackwell chips (in terms of size and price), this is a stock that could see forward earnings revisions, which typically lead to higher price targets and expectations which investors price in the company’s current share price.
Nvidia’s CEO Jensen Huang has continued to harp on the idea that there’s still an “insane” amount of future demand pending for the company’s Blackwell chips. I’m going to take him at his word. After all, this is a company that’s seen its quarterly revenue hit $35.1 billion, with expectations being that this number is likely to surge in the quarters to come.
I think investors will want to pay closer and closer attention to each of the company’s upcoming earnings reports, with Nvidia’s next report being the most pivotal right now.
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