By Daniel Sparks
Publication Date: 2026-02-25 06:05:00
Nvidia’s earnings report will likely feature explosive revenue growth and big guidance, but the stock’s valuation still keeps me on the sidelines.
Shares of Nvidia (NVDA +2.26%) head into one of the market’s biggest events of the quarter when the AI chip leader reports fourth-quarter and full-year fiscal 2026 results after market close on Wednesday, Feb. 25. Given the company’s incredible $4.7 trillion market capitalization as of this writing, you can bet that many investors will be watching — and the news from the company may be enough to move both its own stock and the broader indexes.
Nvidia’s underlying business performance recently has been nothing short of astounding, with the most recent quarter showing revenue growth accelerating again — on top of already extremely high growth rates. The harder part, however, is the stock. At today’s price, the market expects near perfection from the AI (artificial intelligence) chipmaker.
Here’s a closer look at why I’m staying on the sidelines going into Nvidia’s earnings update this week.
Image source: Nvidia.
Business momentum is still exceptional
Nvidia’s fiscal third-quarter update (ended Oct. 26, 2025) showed why investors remain upbeat about AI infrastructure spending. Revenue in the period rose 62% year over year to $57.0 billion — an acceleration from 56% growth in fiscal Q2.
That strength is still centered in the data center segment. Nvidia’s data center revenue rose 66% year over year to $51.2 billion in fiscal Q3…
