All eyes are on Nvidia Corporation (NASDAQ:NVDA) as the AI chipmaker gets set to unveil its Q4 FY 2025 numbers on February 26. Nvidia and the AI revolution it has helped to power have been in the news quite a bit over the past few months, with a number of developments holding major implications for the company’s future prospects.
One the one hand, the mega capital expenditures of the hyperscalers seem only to be increasing, with planned AI infrastructure investments expected to be in the hundreds of billions of dollars in this year alone. On the other hand, the recent DeepSeek revelations seemed poised to change the calculus somewhat, as they raised questions regarding the need for the vast amounts of computing power that Nvidia’s products help supply.
Nvidia’s report will shed further light on the status of the industry, and investors will be eagerly watching CEO Jensen Huang’s presentation to better understand which way the winds are blowing.
Regardless of what transpires, investor Oliver Rodzianko believes it would be a big mistake to part ways with Nvidia at present.
“Whether Nvidia’s stock price falls after earnings or the next rally begins, you can safely buy shares now knowing you are getting an exceptional deal with immense alpha probable over the next 12 months,” asserts the 5-star investor.
Looking to the earnings call, Rodzianko points out that Nvidia’s “exceptional” management team has a long track record of underpromising and overdelivering. The investor notes that Nvidia’s Q4 guidance of $37.5 billion (plus or minus 2%) in revenues and a GAAP gross margin of 73% (plus or minus 0.5%) can therefore be assumed to be on the conservative side.
“If we’re looking at being more optimistic (remarkable companies with strong management like Nvidia deserve the benefit of the doubt), I consider it probable we’ll see a beat and raise this quarter,” predicts Rodzianko, in large part thanks to big tech’s continued capex investments that should drive demand for Nvidia’s chips in the medium-term.
All that being said, if the market is unimpressed with the Nvidia print and shares fall, the investor posits that such a dip would serve as a great opportunity to gobble up shares.
“The medium-term growth horizon for Nvidia is intact, and any sentiment weakness now should be capitalized on by the confident and fiscally aggressive, with knowledge they are investing in the continued success of the world’s greatest chip company,” states the investor, who rates NVDA a Strong Buy. (To watch Rodzianko’s track record, click here)
Wall Street feels very much the same way. With 31 Buy and 2 Hold ratings, Nvidia claims a Strong Buy consensus rating. Its 12-month average price target of $178.81 has an upside approaching 40%. (See NVDA stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.