Nvidia Nears $30 Billion OpenAI Deal With Earnings Due; Is Nvidia A Buy Now?

Nvidia (NVDA) shares advanced Friday with the latest update on its investment in OpenAI coming days before its earnings report.

The artificial intelligence chip giant is close to investing $30 billion in the ChatGPT maker which has its own plans of going public later this year, the Financial Times said. Is Nvidia stock a buy or sell now?

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The new investment takes the place of an earlier announcement to invest $100 billion in OpenAI with the startup buying Nvidia’s chips. The circular financing raised fears of an AI bubble in September. Nvidia will now buy OpenAI stock with its investment.

The AI chip designer’s fourth-quarter earnings report is due Feb. 25. Analysts polled by FactSet expect earnings of $1.52 per share and sales of $65.7 billion.

Investors in Nvidia will no doubt look for an updated revenue outlook after recent developments permitted Nvidia’s H200 chip to be sold in China. China approved purchases of the H200 AI chip for several customers in the country, The Wall Street Journal reported late last month. The first approval of several hundred thousand AI chips is worth about $10 billion, according to unnamed sources cited by the Journal.

The approval followed an earlier push by Beijing for Chinese customers to use local chips. That move came as President Donald Trump signed an order imposing a 25% tariff on the H200 chip, which, like a few other select chips, is “transshipped” or imported into the U.S. for use in other countries.

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In 2025, Nvidia shares surged 39% when the chip leader made Wall Street history by becoming the first company to reach a $5 trillion market capitalization. It has since backed off from that valuation, toward $4.5 trillion.

Nvidia Stock: Price Performance

In terms of its 12-month price performance, Nvidia has outperformed 75% of all other stocks in Investor’s Business Daily’s database.

Are These Magnificent Seven Stocks A Buy Now?
Alphabet | Amazon | Apple | Meta | Microsoft | Nvidia | Tesla

Funds own 41% of the company’s outstanding shares, according to IBD MarketSurge research. Going by its Accumulation/Distribution Rating of D+, it appears that funds are selling the stock. The rating measures price and volume action over the last 13 weeks.

The AI chip behemoth has a top-level Earnings Per Share Rating of 99. Further, the stock’s all-around strength, or Composite Rating, is 98.

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Is Nvidia Stock A Buy?

Looking at chart signals and technical measures can help investors assess whether Nvidia stock is a buy or sell now.

Nvidia shares were above their 50-day moving average Friday within a base with a buy point of 212.19. But, with earnings coming up, investors can wait before buying Nvidia stock.

Please follow VRamakrishnan on X/Twitter for more news on the stock market today.

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