Nvidia (NVDA) shares recently dipped below a critical threshold during a holiday-shortened trading week, with market participants eagerly anticipating the upcoming earnings report from the AI chip leader. The key question now is whether Nvidia stock presents a buying opportunity or should be sold.
Leading up to the earnings announcement, Nvidia highlighted a performance evaluation from SemiAnalysis InferenceX, which revealed that its Blackwell Ultra platform achieved an impressive 50-fold increase in throughput while reducing costs by 35 times compared to its previous chip model. This advancement underscores Nvidia’s innovation and strategic positioning in the competitive AI landscape.
Analysts at Susquehanna have set a price target of $250 for Nvidia, maintaining a positive outlook based on expectations of robust financial results and an anticipated ramp-up from the Blackwell platform through early 2026. Nvidia’s fourth-quarter results are set for February 25, with analysts projecting earnings of $1.52 per share and revenues of approximately $65.6 billion.
A significant development that investors are eyeing is China’s recent approval for the sale of Nvidia’s H200 AI chip, allowing several local clients to purchase this advanced technology. This approval, initially reported by The Wall Street Journal, opens a lucrative avenue worth around $10 billion, following an earlier push from Chinese authorities to favor domestic chips. This shift comes in the context of heightened geopolitical tensions, particularly amid tariffs imposed by the U.S. on certain chip imports.
In 2025, Nvidia made headlines when it became the first company in history to achieve a $5 trillion market capitalization, though its valuation has since stabilized around $4.4 trillion. Over the past year, Nvidia has notably outperformed 68% of other publicly traded companies, showcasing its strong market position.
However, while funds hold 41% of Nvidia’s outstanding shares, the Accumulation/Distribution Rating stands at D+, indicating that institutional investors may be selling the stock. This rating reflects the stock’s price and volume behavior over the past 13 weeks.
From a technical standpoint, Nvidia’s stock has recently fallen below its 50-day moving average. Given the impending earnings report, many investors might choose to adopt a wait-and-see approach before making any purchasing decisions.
In summary, while Nvidia’s innovation in AI chip technology and favorable market conditions paint a promising picture, the current stock performance suggests caution. Investors may do well to monitor the upcoming earnings report closely before committing further capital.
