NVDA Q4 EPS Preview: 5 Reasons the AI King is Still a Buy

NVIDIA Earnings Q4 Loom

Zacks Rank #2 (Buy) stock NVIDIA (NVDA) will report its fourth quarter earnings-per-share results on Wednesday, February 25^th, after the stock market closes. Regardless of whether an investor has a position in the stock, NVIDIA’s earnings will likely be the most important and watched report this earnings season. Not only is NVIDIA the largest company on Earth by market cap ($4.6 trillion), but it also provides the most critical and necessary technology to the AI revolution – the coveted graphics processing units (GPUs). Beyond its sheer size and necessity in the supply chain, NVIDIA earnings will also be critical because it will provide clues into the health of AI spending in general and will provide valuable clues about the health of its business partners such as CoreWeave (CRWV) and Nebius Group (NBIS).

NVIDIA EPS Preview

When: 2/25 AMC.

Sales Estimates: Zacks Consensus Estimates predict that sales will reach 65.56B (+66.68%).

EPS Expectations: Zacks Consensus Estimates suggest EPS will grow to $1.52 per shares (+70.79%).

What to Watch for: Wall Street is already aware that NVIDIA is experiencing massive AI-driven demand, particularly in its high-end ‘Blackwell’ chips which are reportedly sold out. With that in mind, Wall Street investors will want to see reassuring comments from NVIDIA CEO Jensen Huang that the blistering data center spending from hyperscalers such as Microsoft (MSFT) and Meta Platforms (META) continues. Additionally, Huang’s comments about agentic AI’s impact on NVIDIA should be closely watched. Last year, Huang correctly predicted that AI would move from the ‘generative’ (large language model) phase to the ‘agentic’ phase.

5 Reasons to Own NVIDIA into EPS

1.      NVDA Technicals & Relative Strength: Price and volume action is the first data point investors should asses when analyzing a stock. After trending higher for most of 2025, shares have consolidated smartly since October. Typically, stocks will continue in the same direction after building a base structure. Additionally, NVDA has exhibited stellar relative strength versus its peers – a subtle but powerful bullish omen.

2.      NVDA is Cheap: Despite the fear, uncertainty, and doubt about AI spending and valuations, NVDA trades at just a 46 P/E. NVDA’s valuation is very reasonable considering its scorching hot growth rates.

3.      NVDA Bullish EPS Surprise History: Although Wall Street expectations continue to be high for NVIDIA, the company has beaten Zacks Consensus Estimates in eleven of the past twelve quarters.

4.      Wall Street is Becoming more Bullish on NVIDIA: Over the past two months, several Wall Street analysts tracked by Zacks Investment Research have revised 2027 expectations higher.

5.      New Products, China Reopening Potential: NVIDIA continue to ramp its B300 and Rubin platform, which are expected to drive revenue growth in the second half of 2026. Meanwhile, NVIDIA will likely be able to begin selling to China again, opening up a current untapped growth area.

Bottom Line

NVIDIA remains the undisputed king of the AI revolution. While the sheer scale of its $4.6 trillion market cap may give some investors pause, the underlying fundamentals – characterized by a reasonable 46 P/E ratio and a consistent history of crushing estimates-suggest that the growth story is far from over.

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This article originally published on Zacks Investment Research (zacks.com).

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