Is Nvidia buying a bargain before February 26th? The evidence is piled up, and here is what it shows.

nvidia (NVDA) -4.05%)) It has been one of the most performant stocks on the planet in recent years. In fact, it has skyrocketed by more than 800% over the past two years. There is a clear reason for this. The company has created an AI empire and has become a “go” player for customers who are looking to build AI platforms. From chips to software, Nvidia has it all. This helped the company achieve double-digit revenue growth after the quarter.

But a few weeks ago, news from Chinese startup Deepseek packed Nvidia stocks, bringing a 16% drop in one trading session. Deepseek successfully trained the model using Nvidia’s low-performance chips, and investors worried that other Nvidia customers would follow, hurting the revenue growth of the tech giant.

The decline in Nvidia stocks pushed the valuation to the lowest level in a year, leaving Nvidia in bargain territory. Now, the problem is: Nvidia will buy a bargain before the next big catalyst on February 26th to report performance? The evidence is piled up and this is what it shows.

Image source: Getty Images.

Nvidia’s Market Leadership

Nvidia’s AI strength starts with a graphics processing unit (GPU) and is a powerful chip that handles multiple tasks simultaneously. The company mainly sold them to the video game market, but later expanded to other areas, including AI. These GPUs quickly dominated the AI ​​space, and Nvidia expanded its offering to include an entire suite of AI products and services. This has made Nvidia an AI market leader, bringing billions of dollars of businesses from the world’s largest tech companies, including Meta Platforms, Microsoft and Alphabet.

And this leads me to the news of Deepseek, which has heavily put me on Nvidia’s inventory in recent weeks. As mentioned earlier, Deepseek reportedly can train models with cheaper, lower-performing Nvidia chips, so investors speculated that the Tech giant might also go that route. It could hurt demand for Nvidia’s recently launched products and could be disastrous for Nvidia’s revenue and profits.

So let’s look at the catalysts above and consider what the latest evidence tells us about the company and stocks. On February 26th, Nvidia reports its full year revenue for the fourth quarter and fiscal 2025. And, importantly, investors get the latest update on product releases that could change the game, their new Blackwell architecture.

Blackwell’s launch

Nvidia released Blackwell in the fourth quarter, predicting it would bring billions of dollars in revenue from the gate. Blackwell is a customizable architecture that includes several different chips, networking configurations, and more. It is designed to help customers improve efficiency and includes many features to improve performance, improving system reliability and security, for example.

Two very clear evidence of Nvidia’s future is related to demand. In recent weeks, top Nvidia customers such as Meta and Alphabet have announced an increase in AI spending, suggesting that Deepseek News has not encouraged them to change their plans for investing in the sector.

Meta’s chief Mark Zuckerberg spoke about “the hundreds of millions of dollars investing in AI infrastructure over the long term” during the company’s revenue call. Alphabet said that 2025 is expected to have capital expenditures of $75 billion, many of which will support AI growth.

And recently, Wedbush analyst Dan Ives said he and his team spoke to Nvidia AI customers, but none of them have changed their AI investment plans. Deepseek’s news also appears to have not been on Nvidia’s latest chip request.

What history shows

Finally, looking at the stock performance after the latest earnings report, it shows that NVIDIA shares fell two out of three after the earnings announcement. Nvidia’s stock doesn’t necessarily skyrocket immediately after the company’s earnings report – every time it exceeds the analyst’s estimate. So, if history is a guide, Nvidia’s stock may not rise the month after a strong earnings report.

Now, let’s go back to our question: Will Nvidia buy a bargain by February 26th? The above evidence indicates that stocks could stagnate or fall after the report, but there may still be plenty of good news to generate profits. And even if Nvidia shares don’t get immediate profits, they could still win in the long term. Demand for its products remains strong, and Deepseek News has not changed Nvidia’s growth story. Today, Nvidia is trading at bargain level.

All this means that Nvidia will make great AI stocks to buy before February 26th. If the stock rises or falls after the report, that’s fine. Most importantly, this player has the profitability to help stocks grow higher in the coming quarters and years.