My Top 3 Nvidia Predictions for Feb. 26

As Nvidia (NASDAQ: NVDA) prepares to report its fourth-quarter and fiscal year 2025 earnings on Feb. 26, investors are eagerly awaiting the company's performance and guidance. With the AI revolution driving demand for its graphics processing units (GPUs), Nvidia has seen remarkable growth in recent quarters. Here are my top three predictions for Nvidia's upcoming earnings report:

1. Revenue Growth: Nvidia's revenue growth has been nothing short of spectacular, with the company reporting a tripling in year-over-year sales for three consecutive quarters. I predict that Nvidia will continue this trend, reporting another quarter of strong revenue growth driven by demand for AI chips and data center solutions. The company's revenue for the fourth quarter is expected to be around $131.9 billion, representing a year-over-year increase of approximately 116.5%.
2. Gross Margin Expansion: Nvidia's gross margin has been a key indicator of its pricing power and operational efficiency. With a gross margin of 78%, Nvidia has maintained its market position and invested in research and development. I predict that Nvidia will report an expansion in its gross margin, driven by continued demand for its AI chips and the company's ability to maintain its market share. The company's gross margin for the fourth quarter is expected to be around 78%.
3. AI Chip Market Share: Nvidia's dominance in the AI chip market has been a significant driver of its growth. With a market share of 88% in the GPU market, Nvidia has maintained its lead over competitors such as AMD and Intel. I predict that Nvidia will report a further increase in its AI chip market share, driven by the company's continued investment in research and development and its ability to meet the growing demand for AI chips. The company's AI chip market share is expected to be around 90% for the fourth quarter.

In conclusion, Nvidia's upcoming earnings report is expected to be another strong quarter for the company, driven by continued demand for AI chips and data center solutions. With revenue growth, gross margin expansion, and an increase in AI chip market share, Nvidia is well-positioned to maintain its leadership in the AI chip market. However, investors should remain cautious and monitor the company's performance closely, as the AI market is subject to rapid changes and intense competition.