Should You Buy Nvidia Before Aug. 27?

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As an observer, I’ve witnessed some impressive feats from Nvidia (NVDA) lately. Last year, they were welcomed into the prestigious Dow Jones Industrial Average, and they managed to top the annual performance among all index members.

This year took things even further as Nvidia surpassed Microsoft to claim the title of the world’s largest company. And just recently, they pushed the boundaries yet again by becoming the first ever company to hit a whopping $4 trillion in market value – all while their stock reached a brand new high.

For the past two years, the company has been experiencing rapid growth, which might lead you to consider investing. If you are pondering whether now is the right time and when to invest, it’s important to note that Nvidia could have another opportunity for growth on August 27th. The question remains: should you purchase the stock before then? Let’s explore the possibilities.

Seeing the AI potential early

We can begin by delving into Nvidia’s history. Established over three decades ago, the company has experienced significant growth in recent years due to the AI revolution. Recognizing the potential of artificial intelligence, Nvidia strategically designed its graphics processing units (GPUs) to cater to this expanding market. This strategic decision has turned out to be a pivotal move for the company.

Due to its early and robust involvement in AI technology, Nvidia has experienced a significant surge in revenue with figures climbing into the double and triple digits. This has solidified its standing as a trusted name in the field. Customers seeking the most potent and efficient chips for their projects often look no further than Nvidia, leading to a demand that even surpasses the available supply.

In the past two years, this factor significantly contributed to Nvidia’s increase in annual revenue from approximately $27 billion to over $130 billion in their latest fiscal year. Not only that, but net income has also soared, hitting unprecedented heights as Nvidia maintains a high profit margin on the sale of its chips and associated products.

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In recent times, Nvidia has strategically extended its reach into numerous artificial intelligence (AI) products and solutions, positioning itself as a primary supplier for all AI-related needs. This encompasses tools essential for future AI development as well, ensuring that Nvidia’s financial growth is likely to persist in the years ahead. For instance, with Nvidia powering numerous AI applications, it stands poised to assume a pivotal role in the rise of agentic AI and the potential expansion of humanoid robots in the future market.

What’s happening on Aug. 27?

Let’s discuss the upcoming event on August 27, which is Nvidia’s second-quarter earnings release. In my previous article, I talked about how Nvidia’s stock has historically performed well following earnings reports, showing a pattern of gains. This trend might lead investors to feel positive about the stock’s post-earnings performance.

It’s worth mentioning that Nvidia has received positive updates recently. The company, which had been barred from selling its GPUs in China due to U.S. export controls, is now set to resume sales to China soon. The U.S. government has confirmed it will grant the necessary license for this transaction. Any advancements regarding this matter could potentially boost the company’s stock as China accounts for a significant portion of Nvidia’s revenue, contributing approximately 13% last year.

Jensen Huang, Nvidia’s CEO, might provide investors with a sneak peek into the launch of Blackwell Ultra, their latest chip. Recently, CoreWeave, a cloud service for AI computation, announced that they are now offering Ultra to their customers. Given Huang’s reputation for delivering earnings calls packed with updates and insights about future developments, his comments could influence the stock market performance.

Absolutely, Nvidia’s stock has seen significant gains in the double digits this year. However, possible economic or import tariff challenges could pose risks to its performance in the short term. Therefore, it might not be wise to invest now expecting immediate profits. Instead, it would be more prudent to focus on the company’s long-term potential. This strategy increases your chances of achieving a substantial return on investment, as compared to buying and selling within a few months.

In essence, my take is that Nvidia is a good investment currently, but there’s no need for immediate action regarding purchasing its stocks. Whether you decide to invest before or after the company’s earnings report, the stock has potential to substantially boost the worth of your portfolio in the long term.

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2025-07-22 12:11