Nvidia (NVDA +2.57%) last reported earnings on Aug. 27. That was another blowout report from the artificial intelligence (AI) chip leader. Revenue soared 56% year over year in its fiscal 2026 second quarter, and sales of its AI platform Blackwell to data center clients grew by 17% from the prior quarter.
Yet Nvidia stock has only moved about 2% higher since that report as I write this on Oct. 7. That's not because investors weren't impressed with the company's results. It's because it has made a habit of beating expectations. Investors anticipated that it would do so again, and sent Nvidia stock soaring by nearly 20% in the weeks leading up to that report.
Nvidia is scheduled to report its fiscal third-quarter results on Nov. 19, and it's possible that a similar scenario will play out this time around. That would make now the time to buy the stock -- if you're looking at the short term -- ahead of its next run higher as investors jump in closer to the report date.
Image source: Nvidia.
Don't get complacent on Nvidia
Expectations will once again be high. For its fiscal 2026 third quarter, management has guided investors to expect about 15% sequential growth, or 54% year-over-year sales growth. That forecast is even more remarkable considering that it doesn't include any potential H20 chip shipments to China.
NASDAQ: NVDA
Key Data Points
Investors shouldn't yawn at those numbers. After this many quarters of similarly incredible growth rates from the GPU leader, it's possible that the market is starting to take them for granted. But investors shouldn't forget just how much cash flow that growth will result in. That cash should eventually make its way back to shareholders through buybacks, dividends, or share price growth.
The lesson for investors is not to sleep on Nvidia. Expectations may be high, but this is not a story stock. Its revenues and cash flow are real. The next healthy slice of short-term gains for the stock might be arriving in the next few weeks, leading up to Nvidia's Q3 earnings report. But this is a stock that it makes sense to own for the long term. That makes buying Nvidia stock now a smart move either way.
