Nvidia (NASDAQ: NVDA) may be the most-watched stock on the planet these days. Though it’s already climbed a mind-boggling 800% over the past two years, many investors and analysts think the stock still has plenty of room to run. This is thanks to the company’s dominance in one of today’s most promising growth areas: artificial intelligence (AI).
This technology giant is the global leader in the AI chip market, and it’s also built an entire ecosystem of related AI products and services. The world’s biggest tech companies have flocked to Nvidia nonstop for access to these powerful tools. As a result, demand has soared, and earnings have followed. Nvidia has reported double- and triple-digit revenue growth in recent quarters and at high levels of profitability on sales — with gross margin topping 70%.
Now, as we head toward Nvidia’s next catalyst — the fourth-quarter and fiscal full-year 2025 earnings report on Feb. 26 — I predict the stock is set to surge for the following three reasons. Let’s check them out.
The upcoming earnings report will be particularly important because, during the quarter, Nvidia launched its latest innovation: the Blackwell architecture. Blackwell is a customizable platform, including seven different chips, many networking options, and more. The platform’s features are so exciting, promising greater efficiency, performance and security, that demand has surpassed supply.
And this brings me to the reason why I’m optimistic about what Nvidia will say about the Blackwell rollout. The company has spoken many times over the past several months about the strength of demand, with chief Jensen Huang even calling it “insane” in a CNBC interview a few months ago. So, it’s clear customers are lining up to get access to the product — and are ready to wait for it if necessary.
Nvidia also said during the latest earnings call that its visibility on supply had increased, and therefore the company in the fourth quarter is set to surpass its earlier forecast of several billion dollars in Blackwell revenue.
So, considering these clues, I’m expecting more positive updates from the Blackwell launch.
Last month, Chinese start-up DeepSeek announced that it had trained a model using Nvidia’s lower-priced chips and spent only $6 million — which sparked speculation tech giants would follow the example and decrease their AI budgets. And if these major Nvidia customers were to go for the cheaper chips, Nvidia would see a decline in revenue.
