Is it time to buy/sell Nvidia ahead of earnings? Here’s what our AI model says

EditorChinmay Pandya
Published 28/05/2025, 08:08
© Reuters

Investing.com -- The moment the market has been holding its breath for is finally upon us. Today, after the market closes, AI powerhouse Nvidia (NASDAQ:NVDA) is set to report its fiscal Q126 earnings amid conflicting signals.

On the one hand, rising US export curbs due to high commercial tensions with China, as well as dwindling sales in the country, could weigh on the stock. On the other hand, however, a fairly low expectation in comparison to past quarters will likely leave the giant’s top and bottom lines within reach.

Against the volatile backdrop, we turned to our proprietary AI model for stock picking - available exclusively for InvestingPro members for less than $10 a month - for clues on whether it might be time to buy the stock ahead of its bombastic earnings report.

In fact, those who followed our AI’s picks since its launch in 2023 notched a game-changing 226.7% gain on Nvidia stock alone in the period that spanned from November 2023 to December 2024.

The stock was then dropped from our AI’s list in December and went on to move sideways for a full quarter, shedding -1.9% since.

During that period, our AI flagged other buys instead, which helped our users notch a massive 96.7% since launch, nearly doubling their money in less than two years and outpacing the broader S&P 500 by 57.96%.

Some of these other picks that rallied while Nvidia stalled are:

  • Microchip Technology (NASDAQ:MCHP): 27.62%
  • Walt Disney Company (NYSE:DIS): 23.73%
  • MKS Instruments (NASDAQ:MKSI): 22.79%
  • Axcelis Technologies (NASDAQ:ACLS): 21.50%

Just to name a few...

Global investors also got their fair share of gains during the period, with names such as:

  • Thyssenkrupp (OTC:TYEKF) (Germany): 149.7%
  • Indra Sistemas (BME:IDR) SA (OTC:ISMAY): 112.18%
  • Iveco (BIT:IVG) (Italy): 96.47%

Now, with Nvidia earnings set for release tonight, our AI’s answer to whether this is the right time to buy the stock is not yet, for Nvidia is not part of our latest list of stock picks for May.

Does this mean that the stock will not do well in its earnings?

Well, not necesarily. What it really implies is that, according to a compilation of more than 150 investment-grade models, our AI found 15 other better bets for the month based on their fundamentals and chose them instead, signaling a better risk-return proposition for these stocks.

Subscribe here to see the full list of stocks now for less than $10 through this link.

*Already a Pro member? Then, jump straight to the picks here.

With the list for June on its way in just a few days, a good report on the fundamental side could also turn our AI model’s favor to the stock again.

Pro members get these picks first, with notifications on the first trading day of each month.

But how does our AI model actually work?

At the start of each month, our AI refreshes each strategy with up to 20 stock picks. These selections are based on a blend of more than 150 well-established financial models.

Some stocks are added, others stay on, and a few are dropped, reflecting how the AI evaluates their medium-term growth potential.

Performance is then tracked using equal weighting across all the stocks in the strategy. You don’t have to mirror that weighting exactly, but it gives a clear picture of how effective the model is at identifying opportunity across the board.

At the end of the day, stock picking is still a game of probabilities. But the key isn’t just finding winners—it’s knowing when to move on from the ones that no longer stack up.

Since launch, the model has done just that—delivering more than a few standout success stories along the way.

In fact, our backtests suggest that investors who follow the strategies over the long run will get even better results. See below:

Tech Titans

Source: ProPicks

This means a $100K principal in our strategy would have turned into an eye-popping $2,168,000 by now.

And with the next monthly update for June right around the corner, now would be the perfect time to subscribe to InvestingPro and give yourself the upper hand before it’s too late.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.