By Daniel Sparks
Publication Date: 2026-02-24 23:10:00
Nvidia’s business results have been extraordinary, but are they impressive enough to make the stock a buy after a big run-up last year?
Shares of artificial intelligence (AI) chip leader Nvidia (NVDA +0.68%) have held up well in early 2026, edging ahead of the broader market even as several other megacap tech companies have seen their share prices get hit hard. With the stock starting off 2026 outperforming the broader market, could this trend persist over the long haul?
It’s a good time to take a look at the growth stock. Nvidia reports earnings on Wednesday, and it will likely also provide its first look at fiscal 2027 guidance in the update. Of course, no one can know how the stock will react to that update; even a strong quarter can trigger a sell-off if the numbers don’t meet market expectations.
So, the better question is whether the underlying fundamentals justify starting a position today — and what risks would make a more cautious investor wait.
Image source: Nvidia.
The AI boom is driving Nvidia’s sales through the roof
Demand for AI chips — Nvidia’s bread and butter — has solidified the chipmaker’s position among the world’s biggest tech companies. And the AI boom driving this growth doesn’t seem to be slowing down.
Revenue in Nvidia’s most recent quarter, which was its third quarter of fiscal 2026 (the period ended Oct. 26), rose 62% year over year to $57.0 billion, accelerating from 56% growth in fiscal Q2. And the sequential change was even more striking:…
