Should You Buy Nvidia Before Feb. 25? Here’s What History Says.

Key Points

Nvidia (NASDAQ: NVDA) stock has been a major winner for investors since the artificial intelligence (AI) theme gained traction. Over the past three years, the tech giant has seen its shares jump more than 800%. This isn’t too surprising considering Nvidia’s market position — the company has steadily dominated the AI chip market and delivered mind-boggling revenue growth. It’s a story that naturally appeals to investors looking for growth and an innovative company likely to keep on delivering that growth.

Now, though, after Nvidia has climbed so much, you may be wondering about how to time a possible purchase of the stock. Is there an ideal window of opportunity? For example, should you pick up the shares ahead of the next big catalyst on Feb. 25? Let’s see what history has to say.

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Nvidia over the past year

First, though, it’s important to take a closer look at Nvidia’s path over the past year — the stock has climbed, but the path wasn’t linear, and the company faced its share of headwinds. As mentioned, Nvidia has generated spectacular revenue growth quarter after quarter, and it’s done so at a high level of profitability, with gross margins greater than 70%. Rivals exist and have even delivered significant growth, but this hasn’t upset Nvidia’s leadership or prospects. Demand…