Should You Buy Nvidia Stock Before Nov. 20? Wall Street Has a Clear Answer for Investors.

Nvidia (NVDA) is set to report its fiscal 2025 third-quarter earnings on Nov. 20, and investors are eager to know if the stock is a buy before the big day. With the AI market booming and Nvidia leading the charge, let's dive into the data and analyze the potential impact on the stock.

Nvidia's revenue growth has been nothing short of impressive, with triple-digit percentage increases in the last five quarters. However, the growth rate has slowed from 206% year-over-year in Q3 FY 2024 to an expected 80% in Q3 FY 2025. While this slowdown is not surprising given Nvidia's size, the company expects 8.3% quarter-over-quarter revenue growth in Q3 FY 2025. If Nvidia beats this number, it will confirm that companies are still ramping up their AI spending, setting the stage for a big quarter on the revenue side.

Nvidia's margins have been a critical factor in its valuation, with the company maintaining impressive profit growth despite its rapid revenue expansion. In the past, Nvidia's margins dramatically increased due to high demand for its GPUs. However, recent data shows that Nvidia's margins have started to dip slightly, which could be a cause for concern. Nvidia's stock is already highly valued, with a P/E ratio of 68.1, and it needs to maintain its profit levels to justify this valuation. If Nvidia can maintain or slightly decline its margins, it should put the company in the clear for the time being. However, investors should closely monitor Nvidia's margins, as any significant decline could negatively impact its valuation.

Nvidia's new Blackwell chips, set to be in focus during its Q3 earnings report, promise a significant leap in performance and cost efficiency. The GB200 GPU systems can perform AI inference at 30 times the pace of the equivalent H100 systems, making advanced large language models (LLMs) more accessible to a wider range of developers and businesses. With shipments already underway and Microsoft currently offering the new GPU to developers, Nvidia's upcoming report might include billions of dollars in GB200 sales. This could drive a big quarter for Nvidia, at least on the revenue side.

In conclusion, Nvidia's upcoming earnings report on Nov. 20 will provide valuable insights into its revenue growth and margin trends, which could impact its stock price. While the company's impressive revenue growth and AI demand suggest a positive outlook, investors should remain cautious and monitor Nvidia's margins closely. The potential impact of Nvidia's new Blackwell chips on its revenue and market position should also be factored into investment decisions. As always, investors should conduct their own research and consider their risk tolerance before making any investment decisions.