Should You Buy Nvidia Stock Before Nov. 20?

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While some investors consider earnings reports boring events, this sentiment changes if the company reporting is highly influential on the market’s direction. Right now, one could argue that artificial intelligence (AI) is the most influential theme in the market, so when the AI leader reports, investors better pay attention.

Nvidia (NASDAQ: NVDA) is the undisputed leader in AI investing. Its graphics processing units (GPUs) are the computing muscle behind nearly all of the innovative AI models being developed, and it significantly benefited from this trend.

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Nvidia reports earnings for the third quarter of fiscal 2025 on Nov. 20, making it a huge day for the market and the stock. However, stocks are known to rise or fall dramatically after earnings reports, so investors want to know, “Is Nvidia a buy before Nov. 20?”

Stocks fall or rise after earnings reports because the information investors receive is only one only a few looks we get into a company each year. Waiting a full quarter to hear an update from a giant like Nvidia is a long time, as the landscape shifts so much in that period.

However, the change from the second to the third quarter won’t be as large as it used to be.

In last year’s Q3 FY 2024 (ending Oct. 29, 2023), Nvidia’s revenue rose by an incredible 206% year over year. This year, it’s expected to post 80% revenue growth. While that’s a huge slowdown, 80% revenue growth is still impressive, especially considering Nvidia’s size.

When a company is growing as quickly as Nvidia is, it’s better to look at the quarter-over-quarter revenue growth, as long as the company doesn’t display seasonality (revenue rising and falling based on the seasons, like a ski resort or water park may see). Nvidia doesn’t have this issue, and in for Q3 FY2025 it expects 8.3% quarter-over-quarter revenue growth. This figure will be one to watch, as a miss on this number will show that demand isn’t growing as quickly as just a few months ago. But if it beats, then it’s clear that companies are still ramping up their AI spending.

I think it’s more likely than not that Nvidia will beat this number, as we’ve heard language from other big tech companies on their conference calls that calendar year 2025 will be a year of increased spending on AI infrastructure. While some of this spending will go toward custom chips that these companies have developed, a large chunk of it will head Nvidia’s way, setting the stage for a big quarter, at least on the revenue side of things.

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