Is it worth buying Nvidia shares before November 20? The evidence is mounting and here’s what it suggests.

The implementation of artificial intelligence (AI) is progressing at a rapid pace, but some are waiting for the other shoe to drop. This was helped by a strengthening U.S. economy and solid quarterly results from several artificial intelligence companies Nasdaq Composite to a new record last week. But those same factors have some investors wondering whether the bull market has gone too far, too fast.

Nvidia (NASDAQ: NVDA) has become the de facto standard medium for generative artificial intelligence industry. The company is scheduled to report third-quarter fiscal 2025 results in less than three weeks, and it’s not a stretch to suggest that Wall Street is looking forward to the clues the report will provide on the state of AI adoption. Nvidia’s sales have surged since the beginning of last year, boosting stock by 833% (at the time of writing). It’s also less than 5% from its all-time high, which it hit late last month.

Much depends on Nvidia’s upcoming financial report, and many shareholders are wondering whether the company’s shares have a chance to continue its breathtaking streak. Is it worth buying shares before the November 20 financial report? Fortunately for investors, data has begun to accumulate that can help answer this question.

Image source: Getty Images.

Sun on a cloudy day

The key to Nvidia’s astonishing success over the past few years has been the performance of its processors graphics processing units (GPU)which are the best chips to provide the specific type of computing power needed to generate artificial intelligence, as well as other types of cloud computing needs. The necessary resources and the sheer volume of data limit the top AI models to the world’s largest technology companies and cloud service providers – most of which are Nvidia customers. Comments made in the wake of these tech giants’ latest quarterly results provide some insight into the state of the AI ​​revolution – and the evidence is clear.

For example, Microsoft (NASDAQ: MSFT) said it spent significant resources on its artificial intelligence program in the first quarter of fiscal 2025 (which ended September 30). The company had capital expenditure (capex) USD 20 billion, which was mainly allocated to support demand related to cloud and artificial intelligence. Chief Financial Officer Amy Hood expects Microsoft to continue its spending spree: “We expect capital spending to increase sequentially given our signals around demand for cloud and artificial intelligence,” she said.

While Alphabet‘S (NASDAQ: GOOGL) (NASDAQ: GOOG) CEO Sundar Pichai said: “Realizing AI (capabilities) requires… significant capital investment.” The company revealed that capital expenditures were $13 billion in the quarter and suggested there would be a “significant increase in capital investment… through 2025.”

Rounding out the three largest cloud service providers is Amazon (NASDAQ: AMZN). During the third-quarter earnings call, CEO Andy Jassy called generative technology “a once-in-a-lifetime opportunity… we’re aggressively pursuing it.” Chief Financial Officer Brian Olsavsky put this in context, saying Amazon’s capital expenditures will be about $75 billion this year, most of which will go to cloud computing and artificial intelligence infrastructure. The company also said it will showcase “100 new cloud infrastructure and artificial intelligence capabilities” later this month at the AWS re:Invent conference.

It’s finally here Metaplatforms (NASDAQ: META). Although it is not a cloud service provider, the company’s social media sites attract 3.29 billion people every day, providing Meta with vast amounts of user data. The company raised its full-year capital spending forecast to about $39 billion, with Chief Financial Officer Susan Li saying: “We continue to expect significant growth in capital spending in 2025.” She previously noted that this was intended to “support our artificial intelligence research and product development efforts.”

Why it matters

The trend towards accelerating capital expenditure to support the growing demand for artificial intelligence is clear. Additionally, much of this money will be spent on the data centers and servers needed for cloud computing, where much of the generative AI software resides. As such, Nvidia will likely be the recipient of a large portion of this spending.

Nvidia has long been silent about its biggest customers, but that doesn’t stop Wall Street from digging around. Analysts from Bloomberg and Barclays Research crunched the numbers and concluded that Nvidia’s four largest customers – accounting for a combined 40% of its sales – are:

• Microsoft: 15%

• Metaplatforms: 13%

• Amazon: 6.2%

• Alphabet: 5.8%

Each of these companies has left no doubt about their plans for significant capital spending, and in particular significant spending on infrastructure to support their cloud computing and artificial intelligence aspirations. As a leading data center GPU supplier, Nvidia will likely continue to be at the top of the list of beneficiaries of this spending.

Mark your calendar

Nvidia will release its next set of quarterly results on November 20. After achieving triple-digit year-over-year percentage growth for five consecutive quarters, the company tried to contain market expectations by suggesting that revenue growth would only be around 79% this time around. While this would be a slowdown, it would also be extraordinary growth by any measure.

Investors looking to make money in the next three weeks may be disappointed. No one can say for sure how Nvidia stock will react to the report – even if the company exceeds expectations.

For a reminder of the difficulties of short-term forecasts, investors need only think back to this summer, when Nvidia shares lost as much as 27% of their value since mid-June on concerns that the next generation of Blackwell AI processors would be delayed – only to come roaring back. This was an illustration of the fact that for these stocks, volatility is part of the cost of going public. That said, both comments from its large technology customers and their historical spending patterns suggest Nvidia has continued strong growth ahead.

For investors looking for a stock that can be held for years and decades rather than weeks and months, Nvidia is the obvious choice to capitalize on the AI ​​revolution. At around 32 times next year’s earnings, it is still attractively valued. I cannot say with certainty how the company’s shares will perform until November 20. I can say – with a high degree of certainty – that investors who buy Nvidia shares soon and keep it for three to five years or more, they will be very glad they did.

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a board member of The Motley Fool. Suzanne Frey, an Alphabet executive, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, former chief market development officer and spokeswoman for Facebook and sister of Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Danny Vena holds positions at Alphabet, Amazon, Meta Platforms, Microsoft and Nvidia. The Motley Fool covers and recommends Alphabet, Amazon, Meta Platforms, Microsoft and Nvidia. The Motley Fool recommends the following options: long $395 calls to Microsoft in January 2026 and short $405 calls to Microsoft in January 2026. The Motley Fool has information disclosure policy.