Nvidia Earnings Preview: Gross Margin as Key Metric
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 25 2026
0mins
Should l Buy NVDA?
Source: NASDAQ.COM
- Optimistic Earnings Outlook: Nvidia is set to release its fiscal 2026 fourth-quarter earnings on February 25, with expectations that sales and profits will exceed Wall Street forecasts, reflecting strong demand and market dominance in the AI sector.
- Gross Margin Increase: Driven by surging AI demand, Nvidia's GAAP gross margin is projected to rise from the low-to-mid 60% range to an estimated 74.8%, indicating robust pricing power as customers are willing to pay a premium for high-performance GPUs.
- Potential Competitive Pressures: Despite Nvidia's current monopoly in the data center market, competitors like AMD offer more affordable GPUs, which could threaten Nvidia's market share, especially as GPU supply improves.
- Strengthened Strategic Partnerships: The expansion of Nvidia's multi-year GPU agreement with Meta Platforms may alleviate some market concerns, yet it also highlights that a reduction in GPU scarcity could negatively impact its pricing power and gross margin.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 175.750
Low
200.00
Averages
264.97
High
352.00
Current: 175.750
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is an artificial intelligence (AI) infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. Its segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing and networking platforms and AI solutions and software, and automotive platforms and autonomous and electric vehicle solutions, including software. The Graphics segment includes GeForce GPUs for gaming and personal computers (PCs), and Quadro/NVIDIA RTX GPUs for enterprise workstation graphics. Its technology stack includes the foundational NVIDIA CUDA development platform that runs on all NVIDIA GPUs, as well as hundreds of domain-specific software libraries, frameworks, algorithms, software development kits (SDKs), and application programming interfaces (APIs). Its platforms address four markets, which include Data Center, Gaming, Professional Visualization, and Automotive.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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