Key Highlights
Artificial intelligence (AI) stocks have been a driving force behind recent growth in the S&P 500, which has seen double-digit gains over the past three years. Investors have shown keen interest in companies operating within this high-potential field, and their portfolios have, in many cases, reaped the rewards. In fact, during the early phases of the AI boom, several companies’ stock values soared into double and even triple digits.
However, there’s a growing sense of caution among investors about the AI sector. Many are worried that investment fervor might slow down, potentially leading to a significant drop in the stock prices of companies that are currently highly valued. As a result, there’s increased scrutiny on the messages conveyed by industry leaders, especially regarding demand and AI spending levels.
Will AI produce the world’s first millionaire? Our team has released a report on a less-known company described as an “essential monopoly” that supplies crucial technology to both Nvidia and Intel. Learn more
With this context, February 26 could be a pivotal day for the stock market, with one key announcement potentially triggering a notable rise or fall. Let’s explore how to prepare for that.
Image source: Getty Images.
Significant Event on February 25
So, what’s happening on February 26? The major event actually takes place after the markets close on February 25. On that day, Nvidia (NASDAQ:NVDA) will announce its earnings for the fourth quarter and the full year 2026. Nvidia has positioned itself as a key player in the AI growth narrative, producing the most powerful chips crucial for large-scale AI tasks, which have, in turn, generated substantial revenue for the company.
While this is undoubtedly positive for Nvidia, you might be wondering why its statements hold weight over the broader market. Because of Nvidia’s leadership in this booming sector, good news from this firm is typically seen as a good indicator for the future of AI development. Numerous technology giants share some involvement in AI.
If Nvidia encounters setbacks, it could unsettle investors. The concern is that challenges for this tech giant might spill over to others in the field. Thus, any disappointment from Nvidia could ripple through the market, especially as AI investment begins to seep into various industries.
This makes it essential for investors to closely monitor Nvidia’s announcements and pay attention to comments from CEO Jensen Huang during the earnings calls. The implications of these messages could significantly influence the S&P 500’s performance in the upcoming session on February 26.
Common Themes from AI Leaders
As an investor, what should you take from this? Well, there are reasons to remain optimistic going into Nvidia’s report. Peer companies, from chip makers like Advanced Micro Devices to tech giants such as Microsoft, have reported strong earnings and expressed ongoing demand from AI clientele. So, Nvidia might have a similar narrative to share. Plus, historically, Nvidia has a solid track record of exceeding earnings expectations, having done so consistently for the last four quarters.
But, as always, this doesn’t guarantee Nvidia’s stock will skyrocket or the entire market will surge based on favorable earnings. As previously mentioned, some investors are becoming hesitant about diving too deep into AI stocks, possibly opting to invest elsewhere rather than sticking with high-flyers like Nvidia.
Thus, the best course of action for AI investors on February 26 may simply be to stay composed, regardless of how the S&P 500 performs. It’s crucial to keep the longer-term potential of AI in mind, which still appears very promising.
This could mean celebrating your earlier investment in a winning AI stock if Nvidia and the market rise. Conversely, if both Nvidia and the market fall, it might be a chance to snag shares in this AI leader as well as others at a good price. In any case, investing in quality AI stocks—regardless of which way the S&P 500 moves—could yield long-term gains.
Should You Invest in Nvidia Stock Now?
Before deciding to buy Nvidia stock, it’s wise to consider the following:
The analysts from Motley Fool Stock Advisor have pointed out a selection of what they deem to be the top 10 stocks worth considering right now—and Nvidia isn’t on that list. These selected stocks have the potential to deliver impressive returns in the coming years.
Consider, for example, Netflix. If you had invested $1,000 when it was first recommended back on December 17, 2004, that would be worth around $424,262! Similarly, for Nvidia, which was recommended on April 15, 2005, your $1,000 investment would have grown to approximately $1,163,635!
It’s worth noting that the Stock Advisor program boasts an average return of 904%, compared to the S&P 500’s 194%, making it a substantial outperformer. Take a look at the latest Top 10 list. Join a community for retail investors, created by retail investors.
*Stock Advisor will resume on February 22, 2026.
The views expressed here are solely those of the author and may not represent those of Nasdaq, Inc.
