Nvidia (NVDA) Stock Gets Three Bullish Calls Before Q4 Earnings Drop

TLDR

• Nvidia reports Q4 FY26 earnings February 25 with analysts forecasting $1.52 EPS (up 71%) and $65.58 billion revenue (up 67%)
• Wolfe Research, KeyBanc, and UBS analysts maintain Buy ratings citing strong fundamentals and CUDA software advantage
• Alphabet’s $175-$185 billion 2026 AI spending plan expected to drive demand for Nvidia GPUs and Broadcom chips
• NVDA trades at 25x forward earnings versus 61% expected growth, cheaper than Alphabet (28x) and Broadcom (34x)
• Wall Street consensus shows 37 Buy ratings with average price target of $260.38, implying 42.4% upside

Nvidia prepares to report fourth quarter Fiscal 2026 results on February 25 with top Wall Street analysts expressing confidence in a strong earnings beat. NVDA stock has gained 35% over the past year but dipped nearly 2% in 2026 as competition concerns weigh on sentiment.

NVIDIA Corporation, NVDA

Wall Street expects earnings per share of $1.52, reflecting 71% year-over-year growth. Revenue projections stand at $65.58 billion, up 67% from last year.

Wolfe Research analyst Chris Caso reiterated his Buy rating earlier this month. He argues the recent pullback makes Nvidia’s valuation attractive again. Caso sees clear upside potential for 2026 and 2027 estimates driven by pricing power from Rubin and Rubin Ultra chip launches. The analyst raised his Fiscal 2028 EPS forecast to nearly $11.50, about $1.50 above consensus.

KeyBanc analyst John Vinh reaffirmed his Buy rating last week. He believes Nvidia remains uniquely positioned to capture AI and machine learning data center growth. Vinh highlighted the company’s CUDA software platform as a major competitive moat that creates high barriers to entry.

Analyst Expectations Point Higher

UBS analyst Timothy Arcuri boosted his price target to $245 from $235 while maintaining a Buy rating. He expects Q4 revenue to reach $67.5 billion, roughly $2.5 billion above guidance. Using AMD’s recent results as reference, Arcuri sees potential for additional China revenue on top of base results.

For Q1 FY27, Arcuri projects revenue guidance of $76 billion versus investor expectations of $74-$75 billion. While confident about Nvidia’s 75% gross margin outlook near-term, he noted investor skepticism about sustaining those levels as Google and Broadcom TPU chips pose competitive threats.

Alphabet Spending Boosts Growth Outlook

Alphabet recently announced capital expenditures between $175 billion and $185 billion for 2026. That massive spending commitment benefits both Nvidia and Broadcom as Alphabet builds AI infrastructure for internal uses and Google Cloud customers.

Alphabet uses custom Tensor Processing Units designed with Broadcom for internal applications like Gemini. However, Google Cloud customers often prefer Nvidia GPUs for workload flexibility across cloud providers. This dynamic positions Nvidia to capture substantial revenue from Alphabet’s spending plans.

The valuation picture favors Nvidia among AI infrastructure plays. Alphabet projects 18% Q1 growth while Broadcom and Nvidia expect 28% and 61% respectively. Yet Nvidia trades at just 25 times forward earnings compared to Alphabet’s 28 times and Broadcom’s 34 times multiple.

Wall Street Consensus Remains Strong

Nvidia carries 37 Buy ratings, one Hold, and one Sell from Wall Street analysts. The average price target sits at $260.38, indicating 42.4% upside potential from current levels.

Major hyperscalers including Amazon, Microsoft, and Alphabet continue committing to high AI infrastructure spending. This sustained demand supports Nvidia’s growth trajectory as the dominant GPU provider for AI workloads.

The company’s GTC event scheduled for next month could provide additional catalysts. Investors get their next major update when Nvidia reports Q4 results on February 25.

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