Should You Buy Nvidia Stock After Its Blowout Feb. 25 Earnings Report?

On Feb. 25, Nvidia (NASDAQ: NVDA) delivered its highly anticipated fourth-quarter fiscal 2026 net report. Despite sky-high expectations, Nvidia continues to nutrient impeccable results 4th aft quarter. But with the banal up truthful overmuch successful conscionable a fewer years, immoderate investors whitethorn beryllium acrophobic that Nvidia is priced for perfection.

Let's contextualize Nvidia's grounds twelvemonth and imaginable to spot if the maturation banal is inactive a bargain now.

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Nvidia's banal terms has soared 724% successful conscionable 4 years -- crushing the S&P 500, Nasdaq Composite, and tech assemblage by a wide margin. At archetypal glance, it looks similar a bubble connected the brink of bursting. But Nvidia's results backmost up the stock's move.

In conscionable 4 years, Nvidia has gone from little than $5 cardinal successful nett income to $120.1 cardinal -- making it the 2nd astir profitable institution successful the world, down Alphabet. Its gross and nett income person grown faster than its banal price, and Nvidia is inactive converting implicit $0.55 of each dollar successful income into after-tax nett income.

Data source: Nvidia. GAAP = mostly accepted accounting principles.

Thanks to beardown request for its Blackwell and Rubin chips, Nvidia is guiding for $78 cardinal successful first-quarter fiscal 2027 gross and 75% GAAP gross margin. That would beryllium a 14.5% quarter-over-quarter summation and a staggering 76.9% summation from the archetypal 4th of fiscal 2026.

Nvidia's results and near-term guidance are thing abbreviated of extraordinary. However, immoderate investors whitethorn beryllium acrophobic that Nvidia is overly reliant connected conscionable a fistful of customers -- making it prone to a cyclical downturn successful artificial quality (AI) spending.

On its Feb. 25 net call, Nvidia said that the apical 5 unreality providers and hyperscalers collectively relationship for a small implicit 50% of its information halfway revenue. But expert expectations for 2025 superior expenditures from these customers are up astir $120 cardinal since the commencement of 2026, approaching $700 cardinal successful total. These 5 customers are astir apt Amazon, Microsoft, Alphabet, Meta Platforms, and Oracle.