Why Is Nvidia Stock Rising?

Nvidia stock price took a sharp leap in the previous session, with NVDA stock jumping nearly 8% in a single day. The move immediately caught investor attention because it came at a time when expectations around AI spending and Nvidia’s earnings outlook are already running high.

Markets are increasingly treating Nvidia as the most direct way to participate in the global AI infrastructure build-out. With the upcoming earnings report approaching and analysts upgrading forecasts, the latest rally reflects growing confidence that Nvidia’s growth is far from over.

Let’s break down why Nvidia share price is rising, what analysts are expecting from the upcoming earnings, and how investors should read this momentum.

Why is Nvidia Stock Rising?

Nvidia share price rocketed 7.9% on Friday, according to Google Finance. The biggest driver behind Nvidia stock price strength continues to be real, confirmed AI spending. Over the past few months, hyperscalers and Big Tech have reinforced their AI-led capital expenditure plans:

• Amazon has guided $200 billion+ in capex for 2026, largely focused on AI data centres
• Microsoft and Google are expanding GPU-heavy workloads across cloud and enterprise AI
• Corporates are moving from AI pilots to full-scale deployments, sharply increasing compute needs

This matters because Nvidia sits at the centre of this spending cycle. Its GPUs are not optional upgrades; they are core infrastructure for training and running large AI models. As long as AI adoption scales, Nvidia remains directly exposed to that growth.

Other Reasons Why Nvidia is Rising Right Now

The rally reflects other multiple reinforcing factors coming together:

• Dominant market share of roughly 80–85% in AI accelerators
• Strong software lock-in through CUDA and Nvidia’s ecosystem
• Long-dated demand visibility from multi-year data centre projects
• Upward earnings revisions ahead of the earnings call
• Consistent management messaging highlighting demand strength

Together, these factors reduce uncertainty and support investor confidence.

Nvidia Earnings Preview: Why Analysts Are Re-rating NVDA Stock

The next major catalyst for the semiconductor stock is the upcoming Nvidia earnings report. This quarter, markets are treating earnings less as a backward-looking update and more as a test of how durable AI demand really is.

The Nvidia earnings date of February 25 is being closely tracked because expectations have already moved higher. Analysts are no longer debating whether Nvidia will beat estimates, but whether guidance will support elevated growth assumptions through the rest of 2026.

What the Street Expects From the Nvidia Earnings Call

Heading into the Nvidia earnings call, consensus expectations include:

• Revenue growth remaining above 200% year-on-year
• Gross margins sustaining above 75%, indicating continued pricing power
• Sequential growth in data centre, networking, and inference workloads

The previous quarter delivered a strong beat, but analysts now view it as the baseline, not the highlight. What matters more is management commentary around order visibility, supply constraints, and whether demand continues to outpace supply.

Why Goldman Sachs Is Re-rating Nvidia Stock

Goldman Sachs recently turned more constructive on Nvidia, revising its 2026 earnings outlook and forecasting a $2 billion revenue beat, with a $250 price target implying roughly 35% upside from Nvidia’s recent close near $185. Goldman Sachs’ re-rating is based on a structural shift in earnings expectations rather than short-term optimism.

Key reasons analysts are upgrading Nvidia:

• AI demand is now seen as a multi-year cycle, not a one-off surge
• Earnings visibility has improved, driven by committed hyperscaler orders
• Inference workloads are expected to scale meaningfully in 2026, creating recurring chip demand
• Non-GPU businesses, including networking and software, are increasingly reflected in earnings models

In short, analysts believe Nvidia’s earnings curve is becoming longer, smoother, and more predictable, which supports higher conviction going into the Nvidia earnings report. It is worth mentioning that Goldman Sachs’ bullish call sits slightly ahead of the broader Street view.

INDmoney’s consensus, based on 63 analysts, shows 92.06% recommending a ‘BUY’, with an average target price of $253.62, implying a more moderate ~27% upside from current levels. 

Nvidia Earnings Report: Setting the Baseline

While the focus is on what comes next, recent results explain why expectations are elevated.

Source: Nvidia Investor Relations, Nvidia earnings report, Yahoo Finance

These numbers establish Nvidia’s current earnings power before analysts layer in further growth assumptions.

Is Nvidia Overvalued?

Nvidia stock looks expensive given that it is trading at trailing PE of 46, higher than the industry average of around 31, according to INDmoney. But markets are valuing it on earnings scalability, not near-term ratios.

What investors are pricing in:

• Sustained AI capex cycles through 2027–2028
• Nvidia remaining the default compute platform for advanced AI workloads
• Expansion into networking, inference, and enterprise AI systems

Several long-term projections cited by Nasdaq suggest Nvidia could reclaim the $5 trillion market capitalisation by end-2026 if earnings continue to compound at current rates.

Risks Nvidia Stock Investors Should Still Monitor

Despite the strength, risks remain:

• Any slowdown in hyperscaler AI spending
• Competitive breakthroughs in AI chips
• Regulatory or export-related disruptions
• Margin pressure if pricing power weakens

The upcoming Nvidia earnings call will be crucial. If management confirms that AI demand remains supply-constrained rather than demand-constrained, the stock’s momentum could sustain further. For investors, Nvidia remains a high-conviction but valuation-sensitive way to play the AI infrastructure cycle.

Disclaimer:

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