2 Reasons to Buy Nvidia Stock Hand Over Fist Before Thursday — and 2 Reasons to Hold Off

Then there’s Advanced Micro Devices, a top competitor to Nvidia. Although AMD delivered disappointing Q4 guidance in its latest quarterly update, CEO Lisa Su stated, “At a high level, look, we feel very good about the market from everything that we see, talking to customers, there’s significant investment in trying to build out the infrastructure required across all of the AI workloads.”

All of these comments seem to bode well for Nvidia. There are no indications that the demand for its GPUs is waning. Instead, customers can’t get their hands on enough chips and are continuing to expand their AI infrastructure.

Do I think Nvidia will top analysts’ estimates with its Q3 results? Yes. Will it be enough to drive the stock higher? I’m not sure.

Importantly, Nvidia beat expectations with its Q2 results. The company even gave better-than-anticipated Q3 guidance. But its share price fell anyway.

Sometimes, Wall Street’s official earnings estimates don’t match what they really think a company will report. Missing these so-called “whisper” numbers can cause a stock to sink despite beating the official numbers.

Also, investors listen carefully to anything management says in the quarterly conference call that could raise a yellow flag. Nvidia’s executives didn’t completely allay concerns about the rumored delays of its new Blackwell GPUs in the Q2 call.

And that brings us to the other key reason investors might want to hold off on buying Nvidia stock before Thursday. Technology industry news website The Information reported on Sunday that customers are having issues with Nvidia’s Blackwell GPUs overheating servers. Nvidia gave a statement to Reuters that said “the engineering iterations are normal and expected.” The company didn’t sound overly concerned about the reported issues.

However, you can bet that analysts will ask quite a few questions in the Q3 call to try to determine how serious the overheating problems are. If Nvidia doesn’t provide complete reassurance that there won’t be any hiccups in Blackwell revenue, the stock could fall on Thursday.

Whether or not Nvidia exceeds expectations with its Q3 results or talks about minor issues with its Blackwell chips, the stock could take a hit — but only temporarily. What really matters is how Nvidia performs over the long run. Unless the problems with Blackwell are much worse than they seem at this point, this stock should still be one to buy for investors focused on the long term.

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Keith Speights has positions in Amazon and Microsoft. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

2 Reasons to Buy Nvidia Stock Hand Over Fist Before Thursday — and 2 Reasons to Hold Off was originally published by The Motley Fool