Should You Buy Nvidia Stock Before Nov. 20? Wall Street Has a Compelling Answer.

This would represent a clear slowdown compared to its recent growth rate, and the stock was initially sold off on the news. However, in the three months since that report, cool heads have prevailed, and Nvidia stock has returned to record highs.

The biggest driver of Nvidia’s future results is the upcoming release of its AI-centric Blackwell architecture. After a slow start due to production issues, management confirmed that the chips are on track to ship by the end of the year. Demand for the processors has been “insane,” CEO Jensen Huang said in an interview. He went on to say: “Everyone wants to have the most, and everyone wants to be first.” “In the fourth quarter, we expect to charge several billion dollars in revenue from Blackwell,” CFO Colette Kress previously said.

Nvidia’s strong track record in innovation has kept the company at the forefront of the AI ​​revolution, and it doesn’t look like that’s going to change anytime soon.

As Nvidia’s cash report approaches next week, Wall Street remains decidedly bullish. Analysts’ consensus estimates are for revenue of $33 billion — or roughly 82% growth. Nvidia has a track record of beating its own and Wall Street’s expectations, so the results could be more robust.

Of the 63 analysts offering an opinion on Nvidia so far in November, 94% rate the stock a buy or strong buy, and none recommend a sell. The average price target of $157 suggests the stock has an upside of 11%. The consensus Buy rating and price target above the current stock price indicate that analysts believe Nvidia shares have additional upside, but not to the same degree as they have over the past year.

However, over the past few days and as Nvidia’s earnings report approaches, there has been a mad rush by analysts to update their models, resulting in several price target increases this week (12, by my count). Each of these target price increases was higher From the current consensus of $157, indicating that Wall Street is becoming more bullish.

Analysts were almost unanimous in their comments, citing the rapid adoption of artificial intelligence and the construction of more powerful data centers to handle increased demand. Furthermore, most analysts believe Nvidia was conservative in its guidance, giving the company room to beat expectations.

One of the most bullish positions comes thanks to Melius Research analyst Ben Reitzes. He maintained a Buy rating on the stock and increased his price target to $185. “Although it wasn’t possible, we are more excited about Jensen Huang’s next chip than we have ever been before,” he wrote in a note to clients earlier this week.

For investors inclined to short the stock, the analyst says: “Giving up on Nvidia here after its success – Hopper (the artificial intelligence chip) – is like giving up on Apple on the iPhone 1 or 2.” He went on to describe this as a “once-in-a-lifetime opportunity,” saying that Nvidia “should have it.”

Together, this suggests that Wall Street remains remarkably optimistic about Nvidia’s prospects — and with good reason. Even the most conservative estimates regarding the market opportunity represented by generative AI generally start at around $1 trillion, and many are much higher. Competitors have not yet been able to develop a solution that even comes close to Nvidia in terms of performance, so its GPUs are building the foundation for the AI ​​revolution.

To be clear, I’m bullish on Nvidia and I think the stock has a lot to go up from here. However, I am also aware of the volatility that is sure to follow in the coming weeks and months. If you have any doubts, remember that earlier this summer, Nvidia stock lost 27% of its value in just a few weeks, only to bounce back to hit all-time highs.

Finally, there is the evaluation to consider. Wall Street expects Nvidia to generate earnings per share of $4.16 in fiscal 2026, which begins in late January. This means the stock is currently selling for roughly 34 times next year’s earnings. While that’s a slight premium, consider the following: Nvidia’s revenues increased 868% over the past five years, while its net income rose 1,650%. This has sent stock prices up 2610% (as of this writing). This clearly shows why Nvidia deserves the reward.

We’ll know more after Nvidia reports its results after the market closes on Wednesday, November 20.

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Danny Vina He has positions at Nvidia. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has Disclosure policy.

Should you buy Nvidia stock before November 20th? Wall Street has a compelling answer. Originally published by The Motley Fool