Nvidia Stock Set to Soar on Feb. 25 Report

The artificial intelligence industry is about to witness a pivotal moment. On February 25, 2026, Nvidia will unveil its fiscal 2026 fourth quarter earnings, and the market is holding its breath. This earnings report has the potential to make Nvidia stock soar, depending on what management reveals about GPU demand, Rubin production timelines, and the company’s forward guidance for fiscal 2027.

Nvidia remains the undisputed leader in supplying data center chips that power the global AI revolution. The company’s graphics processing units are the backbone of AI development across cloud giants like Amazon, Microsoft, Alphabet, and Oracle. With new chip architectures on the horizon and unprecedented demand from customers racing to deploy AI infrastructure, the stage is set for a significant rally.

The Rubin GPU Revolution

Last year, Nvidia introduced an entirely new GPU architecture called Rubin, which represents a generational leap forward in performance and efficiency. This new platform is so revolutionary that it enables developers to train AI models using 75% fewer GPUs than previous generations. The cost-cutting impact is equally dramatic—inference costs, which represent what customers pay to run AI models after they’re trained, could plummet by up to 90%.

This massive jump in capability builds on Nvidia’s existing Blackwell platform, which itself was a quantum leap ahead of the prior generation. The Blackwell Ultra GB300 delivers up to 50 times more performance than the Hopper-based H100 that launched back in 2022. Now Rubin pushes the boundaries even further. Rubin GPUs are currently in full production and shipping will commence during the second half of 2026. During the February 25 conference call, CEO Jensen Huang will likely detail the production ramp and which major customers are receiving first shipments—information that investors are desperate to hear.

Wall Street Braces for Blockbuster Earnings

Wall Street analysts are girding themselves for another exceptional quarter from Nvidia. In the first three quarters of fiscal 2026 (through October 26), Nvidia generated $147.8 billion in revenue—a 62% increase compared to the same period last year. The data center segment, which is the profit engine, accounted for a whopping 89% of that revenue, totaling $131.4 billion.

For the fourth quarter alone, consensus expectations suggest Nvidia will bring in approximately $65.5 billion in revenue, which would push full-year fiscal 2026 revenue to around $213.3 billion. More importantly, analysts expect the company to post earnings per share of $4.69 for the full fiscal year. Nvidia has a track record of beating analyst estimates, which has historically been a powerful catalyst for share price appreciation.

The truly crucial metric that analysts will be monitoring is management’s forward guidance for fiscal 2027’s first quarter. The Street is modeling for $70.7 billion in revenue during that period. If Jensen Huang and his leadership team project an even larger number, that bombshell could spark a significant rally in the stock price.

Valuation Suggests Significant Upside Potential

Perhaps the most compelling reason to believe Nvidia stock could soar involves the mathematics of valuation. Based on Nvidia’s trailing 12-month adjusted earnings of $4.05 per share, the stock is trading at a price-to-earnings ratio of 47.3. That represents a 23% discount to the company’s 10-year historical average P/E ratio of 61.5—suggesting the valuation may actually be reasonable right now.

The picture becomes even more attractive when examining forward earnings. If Wall Street’s estimate of $4.69 per share in fiscal 2026 earnings proves accurate, the stock’s forward P/E ratio would be 40.7. But the real opportunity emerges when considering analyst projections for fiscal 2027. Analysts believe Nvidia can expand earnings to $7.66 per share next year, implying a forward P/E ratio of just 24.9 against the current stock price.

Here’s where the math becomes compelling: for the stock to merely maintain its current P/E ratio of 47.3 while achieving those projected fiscal 2027 earnings, it would need to climb 90% over the next 12 months. To trade in line with its 10-year average P/E of 61.5, the stock would need to more than double. These calculations suggest substantial appreciation potential lies ahead.

The Investment Opportunity Ahead

As long as Nvidia’s operational results meet or exceed analyst expectations on February 25, the technical and fundamental setup appears favorable for the stock to soar. The combination of record revenue, exceptional earnings growth, massive installed base of customers, and reasonable valuation creates a compelling backdrop for share price momentum in the months ahead.

The February 25 earnings date represents more than just a quarterly reporting event—it’s a catalyst that could unlock the next leg of Nvidia’s advance, particularly if management confirms the strength of Rubin GPU adoption and provides a robust outlook for continued growth in fiscal 2027.