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Nvidia Is Jumping Today -- Is the Stock a Buy Right Now?

The Motley FoolFeb 26, 2025 5:04 PM

Nvidia (NASDAQ: NVDA) stock is gaining ground in Wednesday's trading ahead of its soon-to-be-released fourth-quarter results. The artificial intelligence (AI) leader's share price was up 4.6% as of 11:45 a.m. ET. At the same point in the day's trading, the S&P 500 was up 0.8%, and the Nasdaq Composite was up 1.2%.

After a significant valuation pullback recently, Nvidia stock is bouncing back in today's trading. The company's share price is climbing higher in conjunction with promising demand news. Recent reports show that Chinese customers are increasing their orders for Nvidia's H20 processor for artificial intelligence.

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Nvidia stock is also climbing amid anticipation of the company's Q4 report. The AI hardware giant will publish its results for last quarter and year host an investor conference call after the market closes today. The average analyst estimate calls for the business to report non-GAAP (adjusted) earnings per share of $0.85 on revenue of roughly $38 billion. The report is poised to be a huge moment for Nvidia and the stock market at large.

Is Nvidia stock a buy right now?

Nvidia stock could make some significant moves following today's report. In addition to the company's results for last quarter, investors are also going to be focusing on the company's guidance for the current period. Following the disruptive valuation impacts of the DeepSeek R-1 model in January and recent reports that Microsoft may be taking a more measured approach to expanding its data center footprint, Nvidia's outlook for Q1 will play a big role in shaping subsequent trading for the stock and overall valuation dynamics in the AI space.

Despite the excitement being very high heading into the Q4 release, I continue to think that Nvidia stock is a good long-term investment. Even with efficiency improvements for AI training and inference, the demand outlook for ultra-high-performance processors remains very promising, and there's no indication that Nvidia is losing ground in the market. The company is also in the early stages of tapping into opportunities in processing services, software, and robotics. With these strengths in mind, Nvidia stock continues to look like a worthwhile buy.

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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Microsoft and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

Disclaimer: The information provided on this website is for educational and informational purposes only and should not be considered financial or investment advice.

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