NVIDIA (NASDAQ: NVDA) is set to report earnings on February 26, and all signs point to another blockbuster quarter. If you’ve been watching the AI race unfold, you know that companies like Microsoft (MSFT), Meta (META), Amazon (AMZN), and Google (GOOGL) have drastically ramped up their capital expenditures (capex) to secure the AI infrastructure they need. And where is that money going? Straight into NVIDIA’s pockets.

NVIDIA’s dominance in AI chips, particularly its H100 and upcoming Blackwell GPUs, is unmatched, and it remains the go-to supplier for AI computing. As hyperscalers and enterprises continue building out AI capabilities, NVDA stands to benefit more than any other company.

Here’s why we’re long and strong on NVDA into earnings and how we’re positioning our trade:

Why NVDA Earnings Will Smash Expectations

1. The AI Arms Race = Massive Demand for NVIDIA GPUs

Tech giants are spending big to maintain leadership in AI, and the latest earnings reports confirm it:

• Microsoft (MSFT) boosted capex guidance to record levels to support Azure AI growth.

• Meta (META) announced an explosive $35B+ capex plan, heavily focused on AI infrastructure.

• Amazon (AMZN) is ramping up AI spending, integrating NVIDIA GPUs into AWS cloud offerings.

• Google (GOOGL) is aggressively investing in AI, and while it has its own TPUs, NVIDIA GPUs are still essential to its cloud and AI strategy.

All of these record-breaking spending plans have one clear beneficiary: NVIDIA.

2. NVIDIA Owns the AI GPU Market – No Real Competition

NVIDIA dominates the AI accelerator market with over 90% market share. While AMD and Google are working on alternatives, they aren’t even close to NVIDIA’s ecosystem. The CUDA software stack creates a deep moat, ensuring that businesses stick with NVIDIA’s hardware.

3. Beyond AI: NVIDIA’s Lead in Robotics & Edge Computing

NVIDIA is much more than just an AI chip company. It’s a leader in robotics, self-driving technology, and edge computing, with its Jetson and Isaac robotics platforms leading the charge. As automation takes off, NVIDIA’s ecosystem will be the foundation for the next wave of smart robotics and AI-driven industries.

How We’re Playing NVDA Earnings

1. Buy NVDA Stock – Hold Through Earnings

• Current Price: $130.00

• Target Entry: Anything $130 or below is a buy

• Expected Post-Earnings Target: $140+

2. Buy Calls Before Earnings (Feb 25 @ 2:00 PM CST)

• Nearest Strike Price with Feb 27 Expiration

• Holding Through Earnings to capture the upside from an earnings beat

3. Sell Puts as NVDA Rallies

• As NVDA stock climbs post-earnings, selling $140 puts with a Feb 27 expiration will likely generate the highest returns.

The Bottom Line: NVDA Is a Must-Own AI Stock

NVIDIA isn’t just leading AI, it is AI. The combination of record-breaking tech capex, unmatched GPU dominance, and expansion into robotics and automation makes NVDA a long-term powerhouse.

With earnings on February 26, we expect stellar results, and the stock is poised for a strong move higher. This is a buy-and-hold name for long-term investors and a high-upside trade for those playing the earnings setup.

🚀 Long and strong NVDA.