Nvidia stock has been on a remarkable run, driven by its dominance in the AI market and consistently strong quarterly performances. With Q2 FY 2025 results set to be announced on August 28, investors are wondering if now is the time to buy. While growth may slow compared to previous quarters, expectations are still high, with analysts predicting $28.5 billion in revenue, a 107% increase from last year.
Key Metrics to Watch in Nvidia’s Q2 Report
While revenue growth is crucial, Nvidia’s margins will be a focal point. With gross margins nearing 80% and profit margins around 60%, the company’s profitability is extraordinary. Investors will be keen to see if these margins hold or even expand. Any weakness could indicate rising competition and impact the stock’s performance.
Is Nvidia Stock a Buy Before Q2 Results?
Investing in Nvidia stock before the Q2 report could be tempting, especially given its track record of surpassing expectations. However, the stock’s high valuation—trading at nearly 46 times forward earnings—means that Nvidia needs to continue delivering flawless results to justify its current price. For those confident in its sustained growth, buying now might be worthwhile, but weighing the risks is essential.
