By Daniel Foelber, The Motley Fool
Publication Date: 2026-02-24 18:11:00
Microsoft surpassed $4 trillion in market capitalization last October. At the time of this writing, it has fallen below $3 trillion. Alphabet and Apple were both over $4 trillion in early February but are now down 11.8% and 9.7%, respectively, from their highs. That leaves Nvidia (NASDAQ: NVDA) with a table for one at the $4 trillion club.
With a market cap of $4.58 trillion, Nvidia would have to fall by 12.7% to lose its seat at the $4 trillion club. With a highly anticipated earnings report on Feb. 25, some investors may fear that Nvidia could soon get caught up in the growth stock sell-off.
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Here’s what investors should look for when Nvidia reports earnings, and if the artificial intelligence (AI) stock is a buy now.
Nvidia is valued largely based on its earnings growth. It has a price-to-earnings (P/E) ratio of 46.5 based on its trailing earnings, but just 24.2 based on the stock price divided by its annual earnings per share estimates over the next year.
For context, the S&P 500 (SNPINDEX: ^GSPC) has a 23.6 forward P/E ratio. And with Nvidia projected to continue growing earnings faster than the index over the long term, the stock is a compelling value as long as it keeps delivering decent results.
With $99.2 billion in trailing-12-month…
