Should You Buy Nvidia Before Aug. 27?
Nvidia reached a record high recently, and its market value soared to $4 trillion.
The company also has reported positive news recently, such as its upcoming return to China's AI chip market.
10 stocks we like better than Nvidia ›
Nvidia (NASDAQ: NVDA) has achieved many milestones in recent quarters: The top artificial intelligence (AI) chip designer was invited into the Dow Jones Industrial Average last year and ended up delivering the best annual performance in the index. This year, Nvidia slipped ahead of Microsoft to become the world's biggest company, and just days ago it took this a step further by becoming the first company to ever reach $4 trillion in market value. That's as the stock hit a new record high.
The company has been on fire for most of the past two years, and right now you may be wondering whether you should hop on board and if so, when. Well, Nvidia, has yet another potential catalyst ahead on Aug. 27. Should you buy the stock before then? Let's find out.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »
Seeing the AI potential early
Let's start off by exploring Nvidia's story so far. The company has actually been around for quite a long time -- more than 30 years -- but it saw growth surge in recent years as part of the AI boom. Nvidia, seeing the potential of AI, decided early on to design its graphics processing units (GPUs) specifically to meet the needs of this growing industry. And this proved to be a game-changing move for the company.
Thanks to this early and strong entrance into AI, Nvidia has seen revenue soar in the double and triple digits, and it's built a rock-solid reputation in the field. Customers needing the most powerful and efficient chips to drive their projects automatically turn to Nvidia, and that's resulted in demand that's even exceeded supply.
This helped Nvidia grow annual revenue from about $27 billion two years ago to more than $130 billion in the most recent fiscal year. Net income has climbed too, reaching record levels as Nvidia ensures high profitability on sales of its chips and related products.
Nvidia also has made another smart move in recent years, and that's the expansion into a wide variety of AI products and services, making it the go-to seller of anything a customer may need. This includes tools needed for the AI of the future too, meaning Nvidia's revenue power should continue for years to come. For example, Nvidia -- as it powers so many AI functions -- is well positioned to play a key role as agentic AI takes off and if humanoid robots become a growth area down the road.
What's happening on Aug. 27?
So, now, let's consider what's set to happen on Aug. 27, and that's the tech giant's second-quarter earnings report. A couple of months ago, I wrote about Nvidia stock's performance after earnings reports, and it's shown a trend of gains. That may offer investors a reason to be optimistic about post-earnings performance.
It's also important to note that Nvidia received important good news recently. The company, after temporarily losing access to the Chinese market due to U.S. export controls, will be able to sell its GPUs to China soon. The U.S. assured Nvidia that it would receive the license needed to do so. Any details on progress in that area could lift the stock as China is a big market for the company, representing 13% of revenue last year.
Nvidia chief Jensen Huang may offer investors a glimpse into the rollout of Blackwell Ultra, the company's latest chip. CoreWeave, a cloud provider of compute for AI, recently said it's now making Ultra available to customers. Huang is known for delivering earnings calls filled with news and elements that offer visibility on what's to come, so comments from him could impact stock performance.
Of course, Nvidia stock already has climbed in the double digits this year, and potential general economic or import tariff headwinds could represent risks to performance. So, it's never a good idea to buy a stock now and count on gains in the short term. Instead, it's a better idea to consider that player's long-term potential. This greatly increases your chances of scoring a win. You are likely to post a bigger win than if you buy and sell over a period of a couple of months.
All of this means that, though I consider Nvidia a buy right now, you don't have to rush to get in on the stock before the company's earnings report. If you invest ahead of that moment or afterward, the stock could add significantly to the value of your portfolio over the long run.
Should you invest $1,000 in Nvidia right now?
Before you buy stock in Nvidia, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,056,790!*
Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of July 21, 2025
Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends 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.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Cision Canada
20 minutes ago
- Cision Canada
FNZ Announces Strategic Partnership with Microsoft to Accelerate the Transformation of the Wealth Management Industry
FNZ and Microsoft have entered a global, five-year strategic partnership to accelerate digital transformation across the wealth management industry. The partnership strengthens FNZ's global platform by enhancing its AI, automation and cloud capabilities. The goal is to drive value for financial institutions and their clients by enhancing operational efficiency, accelerating innovation and increasing speed to market. The collaboration includes co-innovation, joint go-to-market initiatives and the development of new AI-powered digital wealth solutions. LONDON, July 28, 2025 /CNW/ -- FNZ, a leading end-to-end wealth management platform has today announced a global, five-year strategic partnership with Microsoft to transform the wealth management industry through technology, innovation and AI-driven digital solutions. The partnership combines FNZ's industry-leading technology, wealth management expertise and global reach with Microsoft's advanced AI capabilities, cloud infrastructure and engineering excellence. By integrating Microsoft Azure AI Foundry at the heart of its platform, FNZ is redefining how financial institutions, advisors and their clients interact by delivering more personalized, intelligent and resilient digital wealth management experiences. This collaboration with Microsoft accelerates this transformation by helping FNZ bring new solutions to market faster, enhance client outcomes, boost advisor productivity and drive innovation across industry. With more than 650 financial institution partners, over 26 million end investors and close to $2 trillion in assets under administration, FNZ brings scale to the partnership. This provides access to one of the largest wealth management data sets in the world, enabling the powerful application of AI, cloud technologies and analytics to deliver deeper insights, greater personalization and better outcomes for advisors, clients and institutions alike. Partnership Highlights Through the partnership, FNZ will work with Microsoft to deliver advanced AI tools, drive new technology development and collaborate on joint go-to-market initiatives, including: Creating a next-generation advisor and investor experience: FNZ will integrate Azure AI Foundry capabilities, including Azure OpenAI in Foundry Models, into its market-leading platform to provide enhanced personalization, greater efficiency and a next-generation user experience. Innovative applications for data and analytics: FNZ will utilize Microsoft Fabric to strengthen its data and analytics capabilities, delivering deeper insights tailored to the unique needs of wealth managers and advisors. Co-development and joint engineering: FNZ will develop new digital wealth solutions by embedding Azure AI Foundry into FNZ's global platform. Joint engineering teams will accelerate product innovation, enhance platform intelligence, and deliver secure, scalable services that strengthen risk management, compliance and resilience. FNZ will also deploy GitHub Copilot across its engineering teams to boost developer productivity and innovation. Resilience and scalability: By combining FNZ's market-leading platform and delivery capabilities with Microsoft's technologies and tooling, the partnership will help create more resilient, scalable and industrial-strength solutions for financial institutions. Enhancing operational efficiency: FNZ will also deploy Microsoft 365 Copilot and intelligent agents to support middle- and back-office processes. Global joint go-to-market: FNZ will collaborate with Microsoft on joint go-to-market activities, including the development and deployment of modular wealth solutions through multiple channels, including the Microsoft Marketplace, alongside coordinated global marketing initiatives and joint participation in industry events. Roman Regelman, Group President, FNZ, said:"FNZ has always been at the forefront of innovation in wealth-management technology. Partnering with Microsoft allows us to accelerate our AI-led roadmap and enhances our ability to deliver personalized, intelligent and resilient solutions to our clients, strengthening our position of leadership." "Together, we are not just upgrading technology. We are setting a new standard for how wealth management is delivered. Partnering with Microsoft further advances our mission to open up wealth, by making investing more accessible to more people worldwide." Bill Borden, Corporate Vice President, Worldwide Financial Services, Microsoft, said:"Our partnership brings together Microsoft's AI and cloud technologies with FNZ's global platform and expertise in wealth management to deliver insights that will lead to more impactful and personalized experiences for advisors and their clients. Together, we're helping financial institutions lead as Frontier Firms by reimagining their operations through agentic AI, accelerating innovation, and unlocking new value across the wealth management ecosystem." FNZ is backed by some of the world's largest institutional shareholders, including Caisse de dépôt et placement du Québec (La Caisse), Canada Pension Plan Investment Board (CPP Investments), Generation Investment Management and Motive Partners.
CBC
21 minutes ago
- CBC
The U.S. economy is thriving in spite of tariffs. Will it last?
By just about every indicator, the U.S. economy is holding up remarkably well. When Donald Trump launched his global trade war, economists and markets said his tariff policy would slow the economy, drive up prices and dramatically reduce global trade. And yet, stocks are at all-time highs, the country's employment is strong, its economy is expanding and the expected surge in inflation hasn't materialized. Canada's economy has shown surprising resilience, as well, with consumer spending starting to pick up last month and unemployment declining. Economists told CBC News it's unclear whether the tariffs' impact was overestimated, or if further pain lies ahead. But they say resilience in both countries is fragile, and could be quickly upended if the trade war worsens or expands. A lack of retaliation BMO's chief economist Douglas Porter says two key factors are driving the recent U.S. resilience. "Other nations have not really been retaliating against the U.S., so their own exports are not facing that much pressure. And on the flip side, the U.S. consumer has been pretty heavily sheltered so far from this," said Porter. In the meantime, American businesses have not passed on the costs of tariffs. General Motors, for example, released earnings last week that said Trump's tariff policies drove down profits by 35 per cent in the second quarter. The automaker said tariffs on cars and parts led to a $1.1-billion US loss in its quarterly earnings. But still, it has not increased prices. Royce Mendes, managing director at Desjardins Capital Markets, says that's becoming a trend among affected American companies. "Some companies may choose to just eat the tariff increase in costs rather than draw the ire of President Trump," said Mendes. GM stock fell on the news, but has since rebounded, paring losses and climbing almost all the way back to where it was before it published its earnings. Financial markets have had some pretty volatile sessions, including steep sell-offs when tariffs are announced, and big rallies when exemptions are made. But stock markets in both Canada and the U.S. are at or near record highs — which investors believe is a sign that the resilience we're seeing will last. A stockpile of products The question, though, is whether the impact of the tariffs has simply been delayed. When the levies were first announced last spring, businesses around the world scrambled to get product out the door and into the United States. That has led to a huge stockpile of products — and it means American importers have not yet had to bear the worst of the tariffs. WATCH | The future of Canada-U.S. free trade: Is Canada-US free trade dead? | About That 4 days ago North American free trade is teetering on the edge of uncertainty as U.S. President Donald Trump's tariffs continue to complicate how goods come and go. Andrew Chang explores signs that free trade — as we've come to know it — is on its way out, and challenges that may lie ahead in renegotiating the Canada-U.S.-Mexico Agreement (CUSMA). Images provided by Getty Images, The Canadian Press and Reuters. "There was a lot of front-running and that may be one of the big reasons why we haven't seen much impact yet," said BMO's Porter. "There's probably some pain to come, but I don't think it's going to be as bad as many economists were fretting about earlier this year, at least for the U.S." Canada's economy has shown resilience, too But both economists point to the fact that Canada's economy has also fared better than almost anyone had expected. Economic growth shrank in April, but only by 0.1 per cent. Statistics Canada says another 0.1 per cent decline is likely for May. (Those numbers will be confirmed on Thursday.) The unemployment rate has actually begun to decline since peaking in May at seven per cent. And last week's retail sales figures showed consumer spending had started to pick up again in June. "We've been pointing to this broader resilience in consumer spending," said Claire Fan, a senior economist with RBC. She says consumer sentiment plunged in the spring, at the height of the uncertainty. But since then, RBC crunched U.S. customs data and found exemptions for CUSMA-compliant products have dragged the average effective tariff rate all the way down to as low as 2.3 per cent. "It's a reflection of President Trump's overall strategy of coming out very aggressive early on, but then walking things back. I mean, the tariffs have not been as punitive for Canada as initially believed — nowhere close to it," said Mendes of Desjardins. Sector-specific pain However, real damage has been done in sectors like auto, steel, aluminum and lumber. The concern now is that the carve-outs Canada has secured for CUSMA-compliant products won't last. "Unless a trade deal is reached to significantly reduce U.S.-Canada tariffs by Aug. 1, when new U.S. tariffs are set to come into effect, we expect job losses and higher prices from tariffs to squeeze disposable income and cause households to tighten their purse strings," wrote Michael Davenport, senior economist at Oxford Economics in a note to clients. WATCH | Negotiations continue between Canada and the U.S.: Canada-U.S. Trade Minister Dominic LeBlanc, speaking to reporters in Washington, D.C., said Canada will only accept a deal when there is one in the best interest of workers and the Canadian economy on the table. On the one hand, some in the Trump administration will look at the U.S. economy's relative resilience as a reason to double down and push harder for more and more punitive tariffs. But escalation wouldn't just be bad for the Canadian economy. Right now, most businesses and consumers on both sides of the border have been sheltered from the worst impacts of the tariffs. That shelter depends on a fine and tricky balance of importers eating some costs, exporters dropping some prices and countries limiting retaliatory measures. Upending that balance further comes with risks on both sides of the dispute.
National Post
2 hours ago
- National Post
The Open Group Launches The Open Group Open Digital Transformation™ Forum
Article content Article content SAN FRANCISCO — The Open Group, the vendor-neutral technology consortium, has today announced the formation of The Open Group Open Digital Transformation™ Forum (ODXF). This new initiative will support enterprise Digital Transformation by developing and popularizing pragmatic, open standards in this increasingly valuable and challenging space. Article content By establishing clear guidelines for Digital Transformation initiatives and enabling cross-industry collaboration to share insights and best practices, ODXF aims to ensure that a greater share of Digital Transformation investment globally delivers effective returns on investment and measurably positive impacts on cultural, workforce, and technological changes. Article content 'The vast majority of enterprises today are engaged in Digital Transformation initiatives, with significant global spend in Digital Transformation,' commented Rashed Al-Yami, Governing Board Member of The Open Group and Manager Digital Platforms & Architecture Design Division at Aramco. 'By developing open standards through vendor-neutral collaboration, ODXF can influence the Digital Transformation agenda towards more rigorous and successful practices.' Article content Key focus areas for ODXF include developing standardized frameworks for Digital Transformation initiatives, ensuring consistency, and producing reference architectures which organizations can incorporate in order to make their own Digital Transformation journeys more agile and responsive. Article content The Forum will also collaborate on establishing a body of knowledge, which incorporates a range of documents designed to help users operationalize the standard, as well as ultimately delivering a certification program for practitioners to demonstrate that they understand and can apply best-in-class approaches to Digital Transformation. Article content 'Digital Transformation is not a new term, but the emergence of a range of disruptive technologies, from AI to quantum computing, has made it more urgent than ever for businesses to find a clear guiding path towards proven approaches to this challenge,' said Steve Nunn, President and CEO of The Open Group. 'Our track record of bringing industry stakeholders together in a neutral, collaborative space means that The Open Group is well placed to add value to one of the world's major areas of investment.' Article content The Open Group is a global consortium that enables the achievement of business objectives through technology standards and open source initiatives by fostering a culture of collaboration, inclusivity, and mutual respect among our diverse group of 900+ memberships. Our Membership includes customers, systems and solutions suppliers, tool vendors, integrators, academics, and consultants across multiple industries. Article content Article content Article content Article content Contacts Article content Media contact Article content Article content Article content Article content
