Feb. 25 Will Be a Huge Day for Nvidia. 3 Important Things to Watch for in the Company’s Upcoming Earnings.

Artificial intelligence (AI) chip giant after market close on Wednesday, February 25 Nvidia (NASDAQ:NVDA) It will report fiscal 2026 fourth-quarter and full-year earnings, followed by a conference call between CEO Jensen Huang, other members of Nvidia’s management team and Wall Street analysts. These events are pure cinema for market watchers, who have seen Nvidia push the stock market higher in recent years.

Earning Reports are always a big deal for Nvidia, as investors view them as an indicator of the entire AI market. Here are three important things to pay attention to.

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In Nvidia’s last earnings call, the company targeted $65 billion in total revenue in the fourth quarter, so hitting or beating that number is always the first question on investors’ minds, and guidance for the next quarter is top of mind, too.

Most of Nvidia’s revenue comes from its data center division, which provides core hardware. graphics processing units (GPUs) and servers to the data centers that hyperscalers depend on to run AI models and solutions.

Investors will look at factors in this section to gauge broader AI demand. For example, what is the sentiment and demand for Nvidia’s most powerful GPUs, called Blackwell, and how effective is the new technology in training AI models? Will the extraordinary demand put forward by the administration historically be reflected in the figures?

Last quarter, Nvidia CFO Colette Kress said Nvidia sees a $500 billion opportunity between the last quarter and the end of 2026 for its next GPU model, called Blackwell and Rubin, and that overall future demand will likely increase. Investors will be watching to see whether this materializes, as well as management’s language and excitement about the potential opportunity.

Pricing power is important to investors because it indicates a company’s competitive position in a particular market. Nvidia has achieved incredible margins by dominating the chip and AI hardware space. But other companies, including hyperscalers, are designing their own chips, and some investors are worried about Nvidia’s competitive position.

For the nine months ending October 27, 2024, Nvidia achieved operating gross margins of more than 76%. However, in the same period in 2025, this figure fell to 69.5% as the company struggled with higher input costs. But Nvidia has recently improved, posting an operating gross margin of 73.6% at the end of last quarter. The administration’s goal is to exit fiscal year 2026 in the mid-70s.

Naturally, investors will be examining whether the company has achieved this and what management’s guidance is on margins in the next fiscal year.

Another big aspect of Nvidia that investors will be looking for updates on is its operations in China. For most of 2025, the company was unable to sell older versions of its chips to businesses in China due to U.S. government restrictions. Huang spent time lobbying in Washington, D.C., and appears to be making progress, although the news is constantly changing.

In December, Huang appeared to have struck a deal with the Trump administration that would allow the company to sell its H200 chips in China, where there has been significant demand in the past. The US government will receive a quarter of the money from the sales.

But in early February, the administration was still conducting a national security review of the deals and customers Nvidia would sell to in China. Meanwhile, if the US approves, Chinese regulators are expected to impose some conditions on sales.

Last August, Huang said that if the Chinese market were fully open, it would be a $50 billion annual opportunity for Nvidia last year. He also said he can see this opportunity growing 50% year over year. Nvidia isn’t currently assuming any revenue from China in its fiscal 2026 fourth-quarter forecast, so it’s easy to see how big that could be for Nvidia if the company reopens its operations there.

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February 25 Will Be a Big Day for Nvidia. 3 Important Things to Consider in the Future Profits of the Company. originally published by The Motley Fool