Should You Buy Nvidia Before Nov. 17? The Evidence is Piling Up and Here’s What It Shows.
Nvidia (NVDA -9.26%) has turned heads with its stock performance in recent years. The shares have soared more than 600% over the past five thanks to the company’s leadership in the artificial intelligence (AI) chip market. Nvidia dominates this market with its high-performance graphics processing units (GPUs), chips that fuel crucial AI tasks. Yes, competitors exist, but Nvidia continues to offer the speed and efficiency customers like — and the company has expanded its portfolio of products and services, making it a one-stop shop for customers.
As a result, earnings have roared higher quarter after quarter. The latest period confirmed this, with revenue climbing 106% to $96 billion and net income advancing 126% to $59 billion.
Though Nvidia stock was a sure bet over the past few years, in recent times, this hasn’t been the case — even as earnings soared. The stock has had its ups and downs amid concerns about the sustainability of tech spending. Investors have questioned whether tech giants will continue to pour enormous amounts of cash into data centers and equipment. Any such decline could hurt Nvidia, which relies heavily on AI for revenue.
Still, Nvidia today is trading at a dirt cheap valuation, the company’s focus on innovation should keep it ahead of rivals, and the long-term AI picture remains intact. These are excellent reasons to get in on the Nvidia story. But should you buy the stock ahead of a key event on Nov. 17? Let’s find out.
Image source: Getty Images.
Nvidia’s GPU updates
We’ll start by diving deeper into the Nvidia story. As mentioned, the company dominates the AI chip space, and it’s taken steps to make sure it remains in the lead. Nvidia launches new GPU updates annually, and this makes it difficult for others to step ahead. The company also leverages its visibility into the next big thing in AI to develop new, important products. A recent example: Seeing that the central processing unit (CPU) would play a significant role in fueling agentic AI, Nvidia developed its first stand-alone CPU.
Agentic AI involves AI working through a problem and taking steps to solve it on behalf of humans, and we should see more and more of this as AI is applied to real-world problems. Nvidia says the CPU market is worth about $200 billion, so the company’s move here could lead to significant revenue gains.
NVDA – Nvidia
$181.60-$18.53 (-9.26%)
NASDAQ · As of 4:00 PM ET 11/05/26
Nvidia is also broadly present across the AI ecosystem, with a recent move being its planned acquisition of the open-source AI platform Hugging Face.
Meanwhile, investors have become more cautious about AI stocks amid concerns over spending on infrastructure build-out. And that has weighed on stocks, such as Nvidia, that benefit from this build-out. Nvidia shares have climbed about 10% this year, a far cry from their performance in recent years.
What’s happening on Nov. 17
Now, let’s consider the event coming up on Nov. 17, and that’s Nvidia’s fiscal 2027 third-quarter earnings report. The company is scheduled to report after the closing bell.
Should you buy Nvidia stock before the earnings announcement? Let’s take a look back in time to see the results of such a move.
Over the past 13 quarters, in the one-week period following Nvidia’s report, the stock fell eight times. And four of those declines came in the past four consecutive quarters.
So the evidence is clear. Current market sentiment, along with historical patterns, suggests that Nvidia stock may slip in the days following the upcoming earnings report. And this means you might not rush to get in on this tech stock before Nov. 17.
But this doesn’t mean you should flee Nvidia stock. In fact, you might look to any dip as an opportunity to pick up shares. The stock today is already trading at a bargain price, at only 22x forward earnings estimates, and the positive points I’ve mentioned above outweigh the negative of a potential near-term slowdown. It’s also important to note that near-term price shifts won’t impact your returns by very much if you hold on for the long term.
So while you don’t have to rush to pick up Nvidia stock, it’s a fantastic buy today or after Nov. 17.
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.