Nvidia (NASDAQ: NVDA) is poised to modestly exceed fiscal Q4 earnings expectations when it reports results on February 26, according to Bank of America (BofA). However, analysts warn that near-term headwinds could dampen its Q1 outlook.
\ud83d\udd39 Q4 Beat Expected: Strong demand likely to drive better-than-expected results.
\ud83d\udd39 Q1 Headwinds: Transition to Blackwell architecture, declining Hopper sales, and China restrictions may pressure guidance.
\ud83d\udd39 AI Leadership: Nvidia remains BofA’s top sector pick due to its computing platform approach.
\ud83d\udd39 Valuation Attractive: Nvidia trades at 31x/24x projected earnings for 2025/2026, on the lower end of its historical range (25x-56x P/E).
\ud83d\udd39 GTC Conference Catalyst (March 17): Expected announcements on GB300, Rubin chips, and potential moves into robotics and quantum computing.
\u2714\ufe0f Philadelphia Semiconductor Index (SOX) gained 3% last week, outperforming the S&P 500’s 1.5% rise.
\u2714\ufe0f Industrial & auto semiconductor stocks benefited from China stimulus and European market recovery.
Nvidia’s long-term AI dominance remains intact, but short-term volatility is expected due to product transitions. Investors will be watching Q1 guidance and GTC announcements closely for future growth signals.
