Should you buy Nvidia before Nov. 19?

asrar_kash November 2, 2025

0 1 4 minutes read

Nvidia will report its Q3 earnings in late November.
The company should continue to grow its revenue through 2026.
The potential for margin compression will make this stock difficult now.
10 shares we like better than nvidia>

In 2023, Invidi (NASDAQ: NVDA) exceeded a market cap of $1 trillion. By 2024, it had surpassed $3 trillion. This year, it is approaching more to become the largest company in the world, with a current market cap of $ 5 trillion. Investors can’t get enough of a semiconductor company with artificial intelligence (AI) capabilities.

Nvidia keeps signing big contracts with partners like Opelai, to keep the semiconductor flood open. With the industry set to spend billions of dollars in capital spending over the next few years, Nvidia looks set to continue growing its $165 million in annual revenue, 1,000% over the past five years. Does that mean you should buy nvidia stock before earnings are reported on November 19?

Even though Nvidia’s revenue has risen to $165 billion, the end market demand for its high-performance desktop computers looks poised to grow over the next few years. Opena – the world’s fastest growing AI company – is set to spend nearly $1 trillion on infrastructure through various financing deals, over several years. It recently announced a $100 billion partnership with nvidia.

As part of the deal, NVIDIA will invest $100 billion in Openai, which will turn around and use those funds to buy Child Child. While it may look like a financial deal for Openai, this would be a reasonable benefit for NVIDIA to maintain customer relationships with a company that could be worth trillions of dollars one day.

Besides Opena, big data builders like it Amazon It is estimated that they will spend $550 billion in expenses in the next year, which will be a growth of 24% from 2025. If we take that as a representative of NVIDIA Nvidia and 2026.

Image Source: Nvidia.

Revenue growth looks promising for nvidia in 2026, but what about earnings? If we look at the income statement of the company, there are some signs that can deal with the possible benefits of other topics in the next year.

First, NVIDIA’s profit margin is down after record highs in 2023 and 2024. Gross margin decreased to 70%, while operating margin was adjusted to 58% in the last 12 months. More rods may be coming due to the increase in imports Taiwan semiconductorArizona factories in Arizona, with higher costs than Nvidia chips are introduced in Taiwan. These costs can be added to the selling price of NVIDIA’s NVIDIA Semiconductor, and if it can’t do it at higher sales prices to its customers, Nvidia’s Gross Gross will continue to fall.

Second, there is increasing competition for AI Chips from its customers. Amazon spends more on existing chips built into the Trainium Computer, while Alphabetical order It has rapidly increased the number of its own tensor processing units (TPUS) used instead of Nvidia products. An increase in supply that can compete with nvidia could lead to lower prices for nvidia chips, which have sold at a premium price for years now. This would bring NVIDIA’s operating margin back to its historical level of 30%-40%.

NVDA Gross Profit Marigin Chart — NVDA Gross Margin Data by YCharts

When analyzing the stock of nvidia, it is very clear that the revenue will grow at a high rate of twofold in the year 2026. However, the more you look at its revenue growth, the more revenue it receives may fall well in line with its revenue growth.

Today, nvidia stock trades at a price-to-earnings ratio (P/E) of 54.5, which is the most expensive of all megacap technology stocks. Tesla. The high earnings ratio sets high expectations for future earnings growth from Nvidia, which may not be met if margins continue to decline.

For this reason, investors should avoid buying nvidia stock heading into the Q3 Realings Report on November 19 19. There are some great tech stocks to buy for your portfolio today.

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BRETTTTETSAF has no position in any of the listed stocks. The Motley Fool has positions and recommends Alphabet, Amazon, Nvidia, Tesla semiconductor manufacturer, and Tesla. The Motely Fool has a disclosure policy.

Should you buy Nvidia before Nov. 19? originally published by the motely fool