Should You Invest in the Stock Market Dip? Reasons to Consider It Despite U.S.-Iran Conflict.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
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Should l Buy NVDA?
Source: Barron's
- Warren Buffett's Advice: In a 1986 letter to Berkshire Hathaway investors, Warren Buffett shared a simple yet impactful maxim.
- Investment Philosophy: The letter reflects Buffett's long-standing investment philosophy and approach to managing investments.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 182.480
Low
200.00
Averages
264.97
High
352.00
Current: 182.480
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems, and Omniverse Enterprise software for building and operating industrial AI and digital twin applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Nvidia's Earnings Exceed Expectations Amid Strong AI Demand
- Significant Earnings Growth: Nvidia reported a net income of $120.1 billion for Q4 FY2026, a 64.5% increase from $72.9 billion in FY2025, establishing itself as the second most profitable company globally, highlighting its strong performance in the AI market.
- Strong Revenue Guidance: The company anticipates $78 billion in revenue for Q1 FY2027, representing a staggering 76.9% increase from Q1 FY2026, indicating robust demand for its Blackwell and Rubin chips and further solidifying its market position.
- Customer Concentration Risk: While Nvidia's top five cloud providers account for over 50% of its data center revenue, analysts project that capital expenditures from these customers will approach $700 billion by 2025, showcasing future growth potential and reducing reliance on a single customer base.
- Investment in Innovation: Nvidia's ongoing investments in AI, including a $10 billion investment in Anthropic and a potential $30 billion investment in OpenAI, demonstrate its critical role in future AI spending, enhancing confidence in its long-term growth prospects.
See More
Nvidia Continues to Achieve Double-Digit Growth
- Revenue and Profit Surge: In the fourth quarter, Nvidia reported a revenue of $68 billion and a profit of $42 billion, reflecting double-digit growth driven by strong demand from AI data center customers, which solidifies its leadership in the AI chip market.
- Investor Concerns: Despite robust performance, investors are worried about high levels of AI spending and question whether future earnings will justify current valuations, leading to Nvidia's stock price remaining flat and trading near its lowest levels over the past year.
- Market Positioning: Nvidia's stock is currently considered 'dirt cheap', and the company is well-positioned for long-term growth in the AI sector, although short-term market volatility may persist, prompting investors to carefully assess their entry points.
- Industry Impact: Nvidia's success not only drives its own growth but also fuels investment and technological advancement across the AI industry, and despite facing market uncertainties, it is still viewed as a 'no-brainer buy' in AI investments.
See More
Vertiv Holdings Shares Surge 36.9% Driven by Strong Q4 Results and 2026 Guidance
- Strong Earnings Drive Stock: Vertiv Holdings reported a 23% year-over-year revenue increase to $2.88 billion in its Q4 2025 report, exceeding Wall Street expectations and driving a 24.5% stock surge in February, reflecting robust demand for AI data center cooling and power solutions.
- Consistent Outperformance: The company has surpassed analyst expectations in all four recent quarters, with adjusted EPS rising 37% year-over-year to $1.36, showcasing sustained profitability improvements that bolster market confidence.
- Significant Order Growth: The book-to-bill ratio reached 2.9x in Q4, with backlog increasing to $15 billion, up 109% year-over-year, indicating rising demand for Vertiv's products and signaling strong future growth potential.
- Optimistic 2026 Outlook: The company guided for 2026 revenue of $13.25 billion to $13.75 billion, with annual growth of 27% to 29%, and adjusted EPS expected to grow 43%, significantly exceeding market expectations and reinforcing its leadership position in the industry.
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Analysis of Investment Prospects for Nasdaq-100 Index Fund
- Tech Stocks Drive Market: In recent years, exceptional performances by tech stocks like Nvidia, Meta, and Broadcom have contributed to a more than 500% increase in the Nasdaq-100 index over the past decade, highlighting the significant impact of the tech sector on market returns.
- QQQ ETF Advantages: The Invesco QQQ ETF, the largest exchange-traded fund tracking the Nasdaq-100 index, manages approximately $395 billion in investor assets, and its expense ratio of 0.18% is well below the average, attracting a large number of investors.
- Investment Concentration Risk: The QQQ ETF's investments are heavily weighted towards companies with the largest market capitalizations, with Nvidia accounting for 8.4% and the smallest company, Atlassian, only receiving a 0.07% allocation, indicating that a disproportionate amount of investor capital is tied to a few mega-cap tech firms, increasing investment risk.
- Future Outlook: While the QQQ ETF may face short-term volatility, the rapid advancements in artificial intelligence and other technologies suggest that investors are likely to achieve significant wealth growth over the long term through this ETF.
See More
Vertiv Q4 Results Exceed Expectations
- Significant Revenue Growth: Vertiv's Q4 2025 revenue rose 23% year-over-year to $2.88 billion, surpassing Wall Street expectations, primarily driven by robust demand for cooling and power solutions for AI data centers.
- Strong Earnings Per Share: Adjusted EPS increased 37% year-over-year to $1.36, exceeding analyst expectations of $1.30, demonstrating the company's ability to consistently outperform market forecasts over the past four quarters.
- Order and Cash Flow Performance: The book-to-bill ratio in Q4 was 2.9, with backlog increasing to $15 billion, up 109% year-over-year, while operating cash flow reached $1.01 billion and adjusted free cash flow was $910 million, reflecting strong market demand and financial health.
- Optimistic 2026 Guidance: The company provided guidance for 2026 revenue and EPS that significantly exceeded Wall Street expectations, forecasting $12.4 billion in revenue and adjusted EPS of $5.33, indicating management's confidence in future growth and further driving stock price appreciation.
See More
Alibaba Faces Leadership Shakeup in AI Division
- Leadership Change: Junyang Lin, the technical lead for Alibaba's Qwen AI project, unexpectedly stepped down, triggering strong reactions from the developer community and marking a significant turning point that could impact future AI model development and market competitiveness.
- Project Impact: Lin joined Alibaba in 2019 and became part of the Qwen team in April 2023; his departure coincides with Alibaba's launch of the Qwen 3.5 open-weight small models, potentially hindering the project's ongoing development and innovation capabilities.
- Community Reaction: Lin's exit is viewed by colleagues as 'the end of an era,' with research scientists and partners expressing gratitude for his contributions, highlighting his central role in advancing Qwen's open-source AI efforts.
- Ecosystem Expansion: Alibaba is expanding its AI ecosystem by unifying the Qwen brand, building developer tools, and investing in its own AI hardware, with nearly 200 million 'one-sentence' orders placed through the Qwen app during the Lunar New Year, indicating strong user demand.
See More
Nvidia's Earnings Exceed Expectations Amid Strong AI Demand
- Significant Earnings Growth: Nvidia reported a net income of $120.1 billion for Q4 FY2026, a 64.5% increase from $72.9 billion in FY2025, establishing itself as the second most profitable company globally, highlighting its strong performance in the AI market.
- Strong Revenue Guidance: The company anticipates $78 billion in revenue for Q1 FY2027, representing a staggering 76.9% increase from Q1 FY2026, indicating robust demand for its Blackwell and Rubin chips and further solidifying its market position.
- Customer Concentration Risk: While Nvidia's top five cloud providers account for over 50% of its data center revenue, analysts project that capital expenditures from these customers will approach $700 billion by 2025, showcasing future growth potential and reducing reliance on a single customer base.
- Investment in Innovation: Nvidia's ongoing investments in AI, including a $10 billion investment in Anthropic and a potential $30 billion investment in OpenAI, demonstrate its critical role in future AI spending, enhancing confidence in its long-term growth prospects.
See More
Nvidia Continues to Achieve Double-Digit Growth
- Revenue and Profit Surge: In the fourth quarter, Nvidia reported a revenue of $68 billion and a profit of $42 billion, reflecting double-digit growth driven by strong demand from AI data center customers, which solidifies its leadership in the AI chip market.
- Investor Concerns: Despite robust performance, investors are worried about high levels of AI spending and question whether future earnings will justify current valuations, leading to Nvidia's stock price remaining flat and trading near its lowest levels over the past year.
- Market Positioning: Nvidia's stock is currently considered 'dirt cheap', and the company is well-positioned for long-term growth in the AI sector, although short-term market volatility may persist, prompting investors to carefully assess their entry points.
- Industry Impact: Nvidia's success not only drives its own growth but also fuels investment and technological advancement across the AI industry, and despite facing market uncertainties, it is still viewed as a 'no-brainer buy' in AI investments.
See More
Vertiv Holdings Shares Surge 36.9% Driven by Strong Q4 Results and 2026 Guidance
- Strong Earnings Drive Stock: Vertiv Holdings reported a 23% year-over-year revenue increase to $2.88 billion in its Q4 2025 report, exceeding Wall Street expectations and driving a 24.5% stock surge in February, reflecting robust demand for AI data center cooling and power solutions.
- Consistent Outperformance: The company has surpassed analyst expectations in all four recent quarters, with adjusted EPS rising 37% year-over-year to $1.36, showcasing sustained profitability improvements that bolster market confidence.
- Significant Order Growth: The book-to-bill ratio reached 2.9x in Q4, with backlog increasing to $15 billion, up 109% year-over-year, indicating rising demand for Vertiv's products and signaling strong future growth potential.
- Optimistic 2026 Outlook: The company guided for 2026 revenue of $13.25 billion to $13.75 billion, with annual growth of 27% to 29%, and adjusted EPS expected to grow 43%, significantly exceeding market expectations and reinforcing its leadership position in the industry.
See More
Analysis of Investment Prospects for Nasdaq-100 Index Fund
- Tech Stocks Drive Market: In recent years, exceptional performances by tech stocks like Nvidia, Meta, and Broadcom have contributed to a more than 500% increase in the Nasdaq-100 index over the past decade, highlighting the significant impact of the tech sector on market returns.
- QQQ ETF Advantages: The Invesco QQQ ETF, the largest exchange-traded fund tracking the Nasdaq-100 index, manages approximately $395 billion in investor assets, and its expense ratio of 0.18% is well below the average, attracting a large number of investors.
- Investment Concentration Risk: The QQQ ETF's investments are heavily weighted towards companies with the largest market capitalizations, with Nvidia accounting for 8.4% and the smallest company, Atlassian, only receiving a 0.07% allocation, indicating that a disproportionate amount of investor capital is tied to a few mega-cap tech firms, increasing investment risk.
- Future Outlook: While the QQQ ETF may face short-term volatility, the rapid advancements in artificial intelligence and other technologies suggest that investors are likely to achieve significant wealth growth over the long term through this ETF.
See More
Vertiv Q4 Results Exceed Expectations
- Significant Revenue Growth: Vertiv's Q4 2025 revenue rose 23% year-over-year to $2.88 billion, surpassing Wall Street expectations, primarily driven by robust demand for cooling and power solutions for AI data centers.
- Strong Earnings Per Share: Adjusted EPS increased 37% year-over-year to $1.36, exceeding analyst expectations of $1.30, demonstrating the company's ability to consistently outperform market forecasts over the past four quarters.
- Order and Cash Flow Performance: The book-to-bill ratio in Q4 was 2.9, with backlog increasing to $15 billion, up 109% year-over-year, while operating cash flow reached $1.01 billion and adjusted free cash flow was $910 million, reflecting strong market demand and financial health.
- Optimistic 2026 Guidance: The company provided guidance for 2026 revenue and EPS that significantly exceeded Wall Street expectations, forecasting $12.4 billion in revenue and adjusted EPS of $5.33, indicating management's confidence in future growth and further driving stock price appreciation.
See More
Alibaba Faces Leadership Shakeup in AI Division
- Leadership Change: Junyang Lin, the technical lead for Alibaba's Qwen AI project, unexpectedly stepped down, triggering strong reactions from the developer community and marking a significant turning point that could impact future AI model development and market competitiveness.
- Project Impact: Lin joined Alibaba in 2019 and became part of the Qwen team in April 2023; his departure coincides with Alibaba's launch of the Qwen 3.5 open-weight small models, potentially hindering the project's ongoing development and innovation capabilities.
- Community Reaction: Lin's exit is viewed by colleagues as 'the end of an era,' with research scientists and partners expressing gratitude for his contributions, highlighting his central role in advancing Qwen's open-source AI efforts.
- Ecosystem Expansion: Alibaba is expanding its AI ecosystem by unifying the Qwen brand, building developer tools, and investing in its own AI hardware, with nearly 200 million 'one-sentence' orders placed through the Qwen app during the Lunar New Year, indicating strong user demand.
See More
