Key Takeaways
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Tech shares, especially Nvidia, are facing volatility as Wall Street reassesses the role of artificial intelligence.
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Nvidia has given strong revenue guidance for its fourth quarter, projecting $65 billion.
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The semiconductor leader plans to restart sales to China by 2026.
In 2026, tech stocks have shown significant fluctuations as investors reconsider the implications of advancements in technology, particularly artificial intelligence. Nvidia (NASDAQ:NVDA), a leader in AI chips, has been particularly affected, with its stock dipping from a 52-week peak of $212.19 last October.
Could this be a moment to invest ahead of the company’s fiscal fourth quarter earnings report set for February 25? It seems like a strategic time to consider buying stocks. Here’s why:
As our analysts have indicated, there are compelling options right now for investment. While Nvidia has significant merit, there are also other stocks worth exploring.
Despite some uncertainty in the market regarding AI, Nvidia has the potential to thrive as the sector progresses. This strength stems from its robust platform that merges high-performance semiconductor hardware with exclusive CUDA software.
CEO Jensen Huang believes AI represents a long-term technological evolution rather than a passing trend. He pointed out that significant investments are currently going into non-AI software, suggesting a future shift towards the advanced technology necessary for AI implementation.
In fact, Nvidia’s expected fourth-quarter revenues of $65 billion reflect a substantial rise from last year’s record of $39.3 billion, indicating that the demand for AI technologies remains strong.
Recently, Nvidia received approval for sales in China, although its current quarter’s forecast did not account for these. Hence, projections for Nvidia’s sales in 2026 could surpass those high fourth-quarter figures.
Nvidia’s influence within the AI landscape is further solidified by key partnerships, including a $5 billion collaborative effort with Intel to produce semiconductor chips by 2028.
Additionally, Nvidia’s current valuation appears attractive, especially considering its forward price/earnings ratio, which might make this an opportune moment for purchase.
The expected earnings multiple has reached its lowest point since April of the previous year, a time when tariff disputes caused market instability. With a favorable valuation and bright prospects, now could indeed be a good time to buy Nvidia stock.
Is It the Right Time to Invest in Nvidia?
Before deciding to invest in Nvidia, keep in mind the following:
The analysts at Motley Fool Stock Advisor have curated a list of stocks they believe can provide strong returns, and interestingly, Nvidia is not included. These stocks could potentially yield impressive gains in the next few years.
Reflecting on past recommendations, if you had invested $1,000 in Netflix on December 17, 2004, it would be worth $415,256 today; similarly, if you had invested that same amount in Nvidia since its recommendation on April 15, 2005, it would have grown to $1,151,865. It’s worth noting that the Stock Advisor has an impressive average return of 892%, surpassing the S&P 500’s 194%.
Don’t overlook the latest Top 10 list from Stock Advisor, as it’s a valuable resource built by retail investors, for retail investors.
*Stock Advisor will resume on February 20, 2026.
Positions are held in both Intel and Nvidia by the analyst, and The Motley Fool recommends both companies. You can find more about their disclosure policy on their website.
The opinions expressed here represent the views of the writer and may not necessarily reflect those of Nasdaq, Inc.
