Financial markets have been characterized by an increased expectation since Nvidia is about to announce its fiscal Q4 2025 findings on 25 February 2026.
However, the opposing arguments warn that a sharp pullback can follow the report. The best price-to-book ratio of the company was on 18 February at $184.97, indicating higher expectations, but the prospects of a future decline.
High Expectations in the Market
Citi analysts expect Nvidia’s January quarter sales to be $67 billion, exceeding the Street’s forecast of $65.6 billion, indicating strong performance in the chip market and reinforcing its market leadership.
Analysts expect Nvidia’s April quarter guidance to be $73 billion, exceeding the market’s $71.6 billion forecast, reflecting the company’s confidence in future growth and potentially attracting more investor interest. The earnings beat trend has been high at Nvidia which outperformed the forecast made by analysts in each of the past 4 quarters.
However, although the equity price suffered a fall after three of such quarters, internal whispers number was higher than the figures that were published.
Keith Speights (Motley Fool) has made adequate commentary;
My prediction that Nvidia’s stock will fall after February 25 could be incorrect. Nvidia is a company that can hit it out of the park even in the most difficult of circumstances. However, I believe that long-term investors should be hoping that my prediction comes true. Any drop in Nvidia’s stock price would be a bonus in my opinion. I fully expect the company’s Rubin ramp later this year to be a huge success. I believe that the ROI for AI will be clear over time. A short-term drop would provide an excellent opportunity to buy this stock on the cheap.Cynicism Casting Shadows over the AI Boom.
Skepticism Shadows AI Boom
Compounding risks implicated the uncertainty about the payback of artificial intelligence that has hit significant corporate acquirers of Microsoft, Alphabet, and Amazon. Microsoft has surpassed expectations and the share price dropped regardless of the large AI capital-expenditure outlays, and Alphabet, in terms of $175 – $185 billion AI expenditure expected in 2026.
Nvidia reported record-breaking data center revenues of $115.2 billion in FY25, representing a 142 % increase over the previous fiscal year. Any sign of slowing sales might lead to increased market volatility.
Future Investment Case
Long term bullish investors consider the present price decline as an excellent point of entry. The market capitalization of the firm stands at $4.503 trillion with the price earnings ratio of 45.78. Proposed upgrades to the Rubin platform, which is set to roll out in the second half of 2026 and will lead to a fivefold improvement in performance, should help Nvidia remain a leader in the AI sector.
Goldman Sachs has to maintain a rating of Buy at a price of $250 with the expectations of Wedbush being the same target by the end of the year. Their short-term downturn, which is led by high valuation ratios and supply limitations, offers investors a logical chance to get holdings in place before the hypothetical launch of the trillion-dollar capability of the Rubin platform and the overall implementation of agentic AI systems.
The previous records indicate that Nvidia has turned on a stronger recovery after such contract cycles in past and therefore it can be assumed that the same trend will be repeated.
