Should You Buy Nvidia Stock After Its Blowout Feb. 25 Earnings Report?

On Feb. 25,** Nvidia **(NVDA +3.04%) delivered its highly anticipated fourth-quarter fiscal 2026 earnings report. Despite sky-high expectations, Nvidia continues to produce impeccable results quarter after quarter. But with the stock up so much in just a few years, some investors may be concerned that Nvidia is priced for perfection.

Let’s contextualize Nvidia’s record year and potential to see if the growth stock is still a buy now.

Image source: Nvidia.

Nvidia’s record year

Nvidia’s stock price has soared 724% in just four years – crushing the S&P 500, Nasdaq Composite, and tech sector by a wide margin. At first glance, it looks like a bubble on the brink of bursting. But Nvidia’s results back up the stock’s move.

In just four years, Nvidia has gone from less than $5 billion in net income to $120.1 billion – making it the second most profitable company in the world, behind Alphabet. Its revenue and net income have grown faster than its stock price, and Nvidia is still converting over $0.55 of every dollar in sales into after-tax net income.

Data source: Nvidia. GAAP = generally accepted accounting principles_._

Thanks to strong demand for its Blackwell and Rubin chips, Nvidia is guiding for $78 billion in first-quarter fiscal 2027 revenue and 75% GAAP gross margin. That would be a 14.5% quarter-over-quarter increase and a staggering 76.9% increase from the first quarter of fiscal 2026.

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NASDAQ: NVDA

Nvidia

Today’s Change

(3.04%) $5.38

Current Price

$182.57

Key Data Points

Market Cap

$4.4T

Day’s Range

$174.65 - $183.46

52wk Range

$86.62 - $212.19

Volume

177K

Avg Vol

175M

Gross Margin

71.07%

Dividend Yield

0.02%

A concentrated customer base

Nvidia’s results and near-term guidance are nothing short of extraordinary. However, some investors may be concerned that Nvidia is overly reliant on just a handful of customers – making it prone to a cyclical downturn in artificial intelligence (AI) spending.

On its Feb. 25 earnings call, Nvidia said that the top five cloud providers and hyperscalers collectively account for a little over 50% of its data center revenue. But analyst expectations for 2025 capital expenditures from these customers are up nearly $120 billion since the start of 2026, approaching $700 billion in total. These five customers are probably Amazon, Microsoft, Alphabet, Meta Platforms, and Oracle.

So while it’s true that Nvidia relies on a handful of customers, the business cycle is still in full-throttle expansion mode and showing no signs of a downturn. It’s also worth noting that Nvidia is doing increasingly more business with Anthropic, OpenAI, and Groq, including a $10 billion investment in Anthropic and a potential $30 billion investment in OpenAI. So as those companies grow, Nvidia could become less dependent on the current “big five.”

Nvidia is a buy

Nvidia’s stock price didn’t react much to its latest earnings print. But the results and management commentary on the earnings call were music to the ears of long-term investors.

Nvidia remains a high-margin cash cow that can afford to aggressively invest in product innovation to capture the bulk of next-generation AI spending – giving it a long runway for future earnings growth.

Add it all up and Nvidia remains a high conviction buy and a foundational AI stock to build a portfolio around.