This week marks a big moment for tech investors as perhaps the most anticipated earnings of the year are set to be announced: Nvidia (NVDA -1.44%) will announce its Q3 results on Wednesday, November 20.

The artificial intelligence (AI) titan driving a market boom has a lot of questions to answer. How is it dealing with the recent problems at one of its key suppliers? Is the release of the latest Blackwell chip going according to plan?

We’ll learn more on Wednesday, but there are plenty of reasons to buy Nvidia stock ahead of time. While there’s always a chance that something disappointing will be revealed, Nvidia currently appears to be in too strong a position to meaningfully change its long-term trajectory. Here are three reasons why Nvidia stock is a buy today.

1. Blackwell looks big

We’ll find out more about Blackwell’s release, but all signs point to a successful rollout of Nvidia’s latest iteration chips. There was a hiccup earlier this year when reports of manufacturing problems spooked investors. It’s now clear that Nvidia handled the issue quickly, and what could have been a significant delay was only a month or two. Blackwell will be delivered to customers soon.

The chips are a significant upgrade from the already very powerful Hopper chips, which still appear to be selling extremely well despite the impending release of their successors. Elon Musk and his xAI team purchased 100,000 Hopper chips a few months ago and are in the process of purchasing another 50,000 chips.

It’s a great position to be in when demand for current and future iterations is at a fever pitch. It has been reported that Nvidia sold out of Blackwell for at least twelve months after its release.

Nvidia CEO Jensen Huang described the question as “insane.” The company collaborates with Foxconn to meet that demand, open a new Blackwell-specific manufacturing plant in Mexico.

2. Big Tech is still spending huge amounts of money

Looking at the recent big-tech earnings calls from Nvidia’s top customers, it’s clear the money is still flowing. Tech giants love Microsoft, MetaAnd Alphabet are spending billions to build data centers that can meet the demands of AI. The capital expenditure (capex) of these companies rose sharply in the past year, with much of it flowing into Nvidia’s coffers. The trend is likely to continue.

Meta aims to significantly increase capital expenditure by 2025, with CEO Mark Zuckerberg highlighting the potential for substantial return on investment (ROI) from AI developments and even suggesting that capital investment needs to grow further. Alphabet spent $13 billion on data center construction last quarter and expects the same in the fourth quarter, putting the company on track to surpass $50 billion in investments for the year.

3. Nvidia has huge free cash flow

Free cash flow (FCF) is a crucial measure of a company’s financial health, and Nvidia has a lot of it. Just look at FCF’s explosion in recent years compared to its rival AMD.

Nvidia Free Cash Flow data by YCharts.

That’s a big difference. FCF can be used for all kinds of things that increase a company’s ability to do business or enrich its shareholders, often both. It gives Nvidia enormous resources to respond quickly and effectively to the market and critically defend its market dominance. While AMD and others try to keep pace, Nvidia can use this capital to significantly outperform the competition, such as more R&D or poaching talent.

At the same time, FCF can be used to buy back shares, which is exactly what Nvidia has done. Over the first half of the year, it repurchased $15.1 billion of stock, and last quarter announced that its board had approved $50 billion in additional share buybacks.

On Wednesday we will see how much of the $50 billion they used. However, it is clear that the company is committed to doing its part to reward its shareholders.