Nvidia's Q4 Earnings Forecast Shows Strong Growth Potential
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 21 hours ago
0mins
Should l Buy NVDA?
Source: Fool
- Optimistic Earnings Forecast: Nvidia anticipates fourth-quarter revenue for fiscal 2026 to reach $65 billion, representing a 65% year-over-year growth, highlighting the company's strong demand in the AI chip market and its leadership position.
- Increased Capital Expenditures: Major tech companies plan to further increase capital expenditures in 2026, primarily for AI infrastructure, which will directly boost Nvidia's GPU sales and solidify its market dominance.
- Surge in Product Demand: CEO Jensen Huang noted that demand for the Blackwell platform data center products is “off the charts,” indicating rapid growth in market demand for Nvidia's AI computing products.
- Record of Exceeding Estimates: Nvidia has surpassed Wall Street's earnings expectations in 20 out of the last 22 quarters, demonstrating strong performance stability and management's clear visibility into future results, with expectations to continue this trend.
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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: 182.810
Low
200.00
Averages
264.97
High
352.00
Current: 182.810
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems, and Omniverse Enterprise software for building and operating industrial AI and digital twin applications.
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.
Nvidia's Q4 Earnings Forecast Shows Strong Growth Potential
- Optimistic Earnings Forecast: Nvidia anticipates fourth-quarter revenue for fiscal 2026 to reach $65 billion, representing a 65% year-over-year growth, highlighting the company's strong demand in the AI chip market and its leadership position.
- Increased Capital Expenditures: Major tech companies plan to further increase capital expenditures in 2026, primarily for AI infrastructure, which will directly boost Nvidia's GPU sales and solidify its market dominance.
- Surge in Product Demand: CEO Jensen Huang noted that demand for the Blackwell platform data center products is “off the charts,” indicating rapid growth in market demand for Nvidia's AI computing products.
- Record of Exceeding Estimates: Nvidia has surpassed Wall Street's earnings expectations in 20 out of the last 22 quarters, demonstrating strong performance stability and management's clear visibility into future results, with expectations to continue this trend.
See More
SOFTBANK GROUP CORP SELLS OFF ITS SHAREHOLDING IN NVIDIA CORP - SEC FILING
SoftBank Group Corp's Decision: SoftBank Group Corp has decided to dissolve its share stake in Nvidia Corp, indicating a strategic shift in its investment portfolio.
SEC Filing: The dissolution of the stake was formally communicated through a filing with the Securities and Exchange Commission (SEC), highlighting regulatory compliance in the process.
See More
Investors Track Economic Data and Fed Minutes for Clarity
- Market Sentiment Shift: Retail sentiment towards the SPDR S&P 500 ETF (SPY) has flipped from 'bearish' to 'bullish' in just one day, indicating a growing confidence among investors that could lead to increased capital inflows in the near term.
- Nvidia Strategic Shift: Nvidia has exited Applied Digital and Arm Holdings while deepening its partnership with Meta by committing to millions of processors, signaling a strategic pivot towards AI and social media that may impact its market share and competitive positioning.
- Tesla Compliance Action: Tesla has avoided a 30-day sales suspension in California after taking 'corrective action' in the marketing of its Autopilot and Full Self-Driving features, which will help maintain its brand image and market position.
- Economic Data Focus: Investors are closely watching the release of housing starts at 8:30 AM ET and industrial production data at 9:15 AM, as these figures will provide crucial signals about economic health that could influence the Federal Reserve's monetary policy decisions.
See More
Applied Digital Stock Volatility Analysis
- Stock Fluctuation: Applied Digital's stock gained 37% as of the last close, driven by a strong earnings report in January, but slumped over 8% in pre-market trading on Wednesday after Nvidia disclosed its exit from the stake, indicating volatility in market confidence.
- Investor Sentiment Improvement: Despite Nvidia's sale of a $177 million stake, retail sentiment on Stocktwits improved from 'extremely bearish' to 'bearish', suggesting a potential shift in market perception that could attract more investor interest in Applied Digital.
- Analyst Perspective: Roth Capital reiterated its 'Buy' rating with a $58 price target for Applied Digital, asserting that Nvidia's exit does not alter the fundamental business outlook, and may even present an attractive entry point for investors amid the stock's decline.
- Long-Term Lease Agreements: Applied Digital reported securing billions in long-term leases, including a $5 billion agreement with a U.S.-based hyperscaler for 200 MW at its Polaris Forge 2 campus, highlighting strong demand and growth potential in the market.
See More
Nvidia's Q4 Earnings Prediction and Market Impact
- Earnings Date Set: Nvidia is scheduled to announce its fiscal 2025 Q4 results on February 25, 2026, with a revenue estimate of $65.6 billion, reflecting a year-over-year growth of approximately 71%, indicating a robust business foundation, yet the market's reaction to its stock price may not be optimistic.
- High Expectations Issue: Although Nvidia has consistently beaten Wall Street estimates in the past four quarters, its stock has declined after three earnings reports, highlighting the market's sensitivity to exceeding expectations, as investors may sell off shares due to concerns about future performance.
- Memory Shortage Risk: Should Nvidia's management indicate that memory supply issues could impact GPU sales during the earnings call, it could trigger panic among investors, leading to a stock price drop, reflecting the market's heightened concern over supply chain challenges.
- AI ROI Skepticism: With increasing skepticism regarding the return on investment from AI spending, Nvidia faces additional challenges; similar to Microsoft and Alphabet, which reported strong earnings but saw stock declines due to rising AI expenditures, Nvidia may also be affected by this trend.
See More
Nvidia Secures Major Commitment from Meta: Implications for the Threat Posed by Broadcom's AI Chips.
- Meta Platforms and Nvidia Partnership: Meta Platforms is entering a significant chips-and-networking deal with Nvidia, potentially worth tens of billions of dollars.
- Nvidia's Market Position: This collaboration highlights Nvidia's status as a leading player in the artificial intelligence processor market.
See More
Nvidia's Q4 Earnings Forecast Shows Strong Growth Potential
- Optimistic Earnings Forecast: Nvidia anticipates fourth-quarter revenue for fiscal 2026 to reach $65 billion, representing a 65% year-over-year growth, highlighting the company's strong demand in the AI chip market and its leadership position.
- Increased Capital Expenditures: Major tech companies plan to further increase capital expenditures in 2026, primarily for AI infrastructure, which will directly boost Nvidia's GPU sales and solidify its market dominance.
- Surge in Product Demand: CEO Jensen Huang noted that demand for the Blackwell platform data center products is “off the charts,” indicating rapid growth in market demand for Nvidia's AI computing products.
- Record of Exceeding Estimates: Nvidia has surpassed Wall Street's earnings expectations in 20 out of the last 22 quarters, demonstrating strong performance stability and management's clear visibility into future results, with expectations to continue this trend.
See More
SOFTBANK GROUP CORP SELLS OFF ITS SHAREHOLDING IN NVIDIA CORP - SEC FILING
SoftBank Group Corp's Decision: SoftBank Group Corp has decided to dissolve its share stake in Nvidia Corp, indicating a strategic shift in its investment portfolio.
SEC Filing: The dissolution of the stake was formally communicated through a filing with the Securities and Exchange Commission (SEC), highlighting regulatory compliance in the process.
See More
Investors Track Economic Data and Fed Minutes for Clarity
- Market Sentiment Shift: Retail sentiment towards the SPDR S&P 500 ETF (SPY) has flipped from 'bearish' to 'bullish' in just one day, indicating a growing confidence among investors that could lead to increased capital inflows in the near term.
- Nvidia Strategic Shift: Nvidia has exited Applied Digital and Arm Holdings while deepening its partnership with Meta by committing to millions of processors, signaling a strategic pivot towards AI and social media that may impact its market share and competitive positioning.
- Tesla Compliance Action: Tesla has avoided a 30-day sales suspension in California after taking 'corrective action' in the marketing of its Autopilot and Full Self-Driving features, which will help maintain its brand image and market position.
- Economic Data Focus: Investors are closely watching the release of housing starts at 8:30 AM ET and industrial production data at 9:15 AM, as these figures will provide crucial signals about economic health that could influence the Federal Reserve's monetary policy decisions.
See More
Applied Digital Stock Volatility Analysis
- Stock Fluctuation: Applied Digital's stock gained 37% as of the last close, driven by a strong earnings report in January, but slumped over 8% in pre-market trading on Wednesday after Nvidia disclosed its exit from the stake, indicating volatility in market confidence.
- Investor Sentiment Improvement: Despite Nvidia's sale of a $177 million stake, retail sentiment on Stocktwits improved from 'extremely bearish' to 'bearish', suggesting a potential shift in market perception that could attract more investor interest in Applied Digital.
- Analyst Perspective: Roth Capital reiterated its 'Buy' rating with a $58 price target for Applied Digital, asserting that Nvidia's exit does not alter the fundamental business outlook, and may even present an attractive entry point for investors amid the stock's decline.
- Long-Term Lease Agreements: Applied Digital reported securing billions in long-term leases, including a $5 billion agreement with a U.S.-based hyperscaler for 200 MW at its Polaris Forge 2 campus, highlighting strong demand and growth potential in the market.
See More
Nvidia's Q4 Earnings Prediction and Market Impact
- Earnings Date Set: Nvidia is scheduled to announce its fiscal 2025 Q4 results on February 25, 2026, with a revenue estimate of $65.6 billion, reflecting a year-over-year growth of approximately 71%, indicating a robust business foundation, yet the market's reaction to its stock price may not be optimistic.
- High Expectations Issue: Although Nvidia has consistently beaten Wall Street estimates in the past four quarters, its stock has declined after three earnings reports, highlighting the market's sensitivity to exceeding expectations, as investors may sell off shares due to concerns about future performance.
- Memory Shortage Risk: Should Nvidia's management indicate that memory supply issues could impact GPU sales during the earnings call, it could trigger panic among investors, leading to a stock price drop, reflecting the market's heightened concern over supply chain challenges.
- AI ROI Skepticism: With increasing skepticism regarding the return on investment from AI spending, Nvidia faces additional challenges; similar to Microsoft and Alphabet, which reported strong earnings but saw stock declines due to rising AI expenditures, Nvidia may also be affected by this trend.
See More
Nvidia Secures Major Commitment from Meta: Implications for the Threat Posed by Broadcom's AI Chips.
- Meta Platforms and Nvidia Partnership: Meta Platforms is entering a significant chips-and-networking deal with Nvidia, potentially worth tens of billions of dollars.
- Nvidia's Market Position: This collaboration highlights Nvidia's status as a leading player in the artificial intelligence processor market.
See More
