TLDR
- Nvidia reports Q4 FY26 results February 25 with Wall Street projecting $1.52 EPS (up 71%) and $65.58 billion revenue (up 67%)
- Top analysts from Wolfe Research, KeyBanc, and UBS maintain Buy ratings on strong demand for AI GPUs and CUDA software moat
- Alphabet’s $175-$185 billion 2026 capex plan drives optimism for Nvidia and Broadcom as hyperscalers boost AI infrastructure spending
- NVDA trades at 25x forward earnings despite 61% growth forecast, trading below Alphabet (28x) and Broadcom (34x) multiples
- Consensus rating shows 37 Buys with $260.38 average price target representing 42.4% upside from current price levels
Nvidia gears up for its fourth quarter Fiscal 2026 earnings release on February 25 with analysts projecting strong results. The chip giant’s stock has rallied 35% over the past year despite slipping nearly 2% in 2026 on AI competition worries.
Analysts expect earnings per share of $1.52, marking 71% year-over-year growth. Revenue forecasts point to $65.58 billion, representing a 67% jump from the prior year period.
Wolfe Research analyst Chris Caso maintained his Buy rating this month, calling Nvidia’s valuation attractive after the recent pullback. He sees clear paths to estimate increases for 2026 and 2027 driven by pricing strength as Rubin and Rubin Ultra chips ramp production. Caso lifted his Fiscal 2028 EPS estimate to approximately $11.50, exceeding consensus by $1.50.
KeyBanc analyst John Vinh reaffirmed his Buy rating last week, emphasizing Nvidia’s dominant position in AI and machine learning data center expansion. The analyst pointed to CUDA software as a powerful competitive advantage that limits threats from rivals.
Revenue Beat Expected by Top Analyst
UBS analyst Timothy Arcuri raised his price target to $245 from $235 while keeping a Buy rating. He forecasts Q4 revenue at $67.5 billion, approximately $2.5 billion above company guidance. Arcuri referenced AMD’s recent earnings to suggest several billion dollars in additional China revenue could materialize.
For Q1 FY27, Arcuri expects revenue guidance of $76 billion compared to investor estimates of $74-$75 billion. The analyst remains confident about Nvidia’s 75% gross margin target short-term but acknowledged investor concerns about maintaining those levels as competition from Google and Broadcom TPU chips intensifies.
Hyperscaler Spending Supports Growth
Alphabet delivered major news for Nvidia investors with its capital expenditure announcement. The company plans to spend between $175 billion and $185 billion in 2026 on AI infrastructure, confirming another year of heavy investment in computing capabilities.
Alphabet deploys custom Tensor Processing Units built with Broadcom for internal projects like Gemini and Google DeepMind. For Google Cloud customers seeking flexibility to transfer workloads between providers, Nvidia GPUs remain the preferred choice. This split creates opportunity for both Nvidia and Broadcom to benefit from Alphabet’s spending surge.
The valuation comparison reveals an interesting opportunity. Alphabet expects 18% Q1 revenue growth while Broadcom and Nvidia project 28% and 61% growth rates respectively. Yet Nvidia trades at just 25 times forward earnings versus Alphabet at 28 times and Broadcom at 34 times.
Strong Wall Street Consensus
Wall Street maintains an overwhelmingly positive stance on Nvidia with 37 Buy ratings, one Hold, and one Sell. The average analyst price target reaches $260.38, implying 42.4% potential upside.
Major cloud providers including Amazon, Microsoft, and Alphabet continue allocating substantial budgets to AI infrastructure. This ongoing demand supports Nvidia’s position as the leading GPU supplier for AI applications.
Nvidia’s upcoming GTC conference next month could deliver additional positive catalysts. The February 25 earnings report will provide investors with the next critical update on the company’s performance and forward guidance.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
