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The Zacks Analyst Blog Highlights NVIDIA, Microsoft, Alphabet, Intel and Advanced Micro Devices

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For Immediate Release

Chicago, IL – February 26, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: NVIDIA Corp. (NVDA - Free Report) , Microsoft Corp. (MSFT - Free Report) , Alphabet Inc. (GOOGL - Free Report) , Intel Corp. (INTC - Free Report) and Advanced Micro Devices, Inc. (AMD - Free Report) .

Here are highlights from Tuesday’s Analyst Blog:

Should You Buy, Hold, or Sell NVIDIA Stock Before Earnings?

DeepSeek’s menace resulted in a sharp drop in NVIDIA Corp.’s stock last month. Although most of the losses have since recovered, the stock is now awaiting the fiscal 2025 fourth-quarter and full-year results announcement on Feb. 26, after market close.

Is it judicious to buy NVIDIA stock before the earnings report, or is it wiser to wait and observe? Let’s see –

NVIDIA Stock – Positive Earnings Expectation

In the reporting quarter, NVIDIA launched its most awaited cutting-edge Blackwell architecture. CEO Jensen Huang has already said that the demand for the Blackwell chips has been insane due to their greater efficiency, faster artificial intelligence (AI) interface, and more security.

The likes of Microsoft Corp. and Alphabet Inc. have ordered Blackwell chips, while the older Hopper chips are still in demand for their superior quality compared to rival Intel Corp.

So, it’s evident that customers have lined up for the current and next-generation chips, leading the company to surpass its revenue projections for the fiscal fourth quarter and full year. Likewise, NVIDIA’s strong average four-quarter earnings surprise of 9.8% implies potential earnings growth in the upcoming release, likely boosting its stock value.

NVIDIA Stock – Promising Future

DeepSeek’s threat is overstated and should not have a long-term impact on NVIDIA stock. DeepSeek launched a cost-effective large language model that can disrupt the AI landscape. After all, NVIDIA’s graphic processing units (GPUs) needed for AI infrastructure buildout are way more expensive.

However, lower expenses will eventually drive more use of computing power and benefit NVIDIA stock. The tech giant, anyhow, has the resources to introduce more cost-friendly products and enrich the AI ecosystem (read more: Buy NVIDIA Stock, DeepSeek's Threat is Exaggerated).

NVIDIA’s dominant position in the GPU market has already given the company a competitive advantage. Lest we forget, NVIDIA’s CUDA software platform is more popular among developers than Advanced Micro Devices, Inc.’s ROCm software platform. The change is improbable due to the cumbersome infrastructure transitions. Thus, NVIDIA’s strong moat bolsters its stock outlook (read more: Which Is the Superior AI Investment Now: NVIDIA or AMD?).

Buy More NVDA Shares Now

NVIDIA’s shares are expected to rise steadily due to strong earnings from high Blackwell chip demand, declining DeepSeek worries and GPU dominance, making NVDA stock a compelling buy now. Additionally, NVIDIA’s 12.8% debt-to-equity ratio is lower than the Semiconductor - General industry’s average of 20.1%, which reduces investment risk.

To top it off, NVIDIA stock remains reasonably priced. This is because, per the price/earnings ratio, NVDA trades at 30.9X forward earnings. In comparison, the industry’s forward earnings multiple is 36.06.

Hence, NVIDIA rightfully has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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