All eyes are on Nvidia Corp (NASDAQ: NVDA) this week as it warms up to report its quarterly earnings on November 20th.
The consensus is for this artificial intelligence behemoth to double its data center business in Q3.
Nvidia is broadly expected to earn 74 cents a share on $33.2 billion in revenue in its third financial quarter which translates to about an 83% year-on-year increase in its top as well as the bottom line.
So, the chipmaker looks all set to report another solid quarter after market close on Wednesday.
But could it be the catalyst Nvidia stock needs to further extend its 200% year-to-date rally? Fortunately, analysts sure seem to think so.
Nvidia stock down on concerns of Blackwell delays
Nvidia shares are in the red this morning following a report that its latest AI chip tends to overheat in servers.
Still, Vivek Arya – a Bank of America analyst remains super bullish on NVDA as Blackwell issues will likely prove to be temporary only. He’s convinced the demand for Nvidia solutions will remain strong in 2025.
He even dubbed Nvidia stock “undervalued” on a price-to-cash-flow basis at close to $140 in a recent interview.
“They’re a system integrator at this point. They’re selling complete racks with all the computing, networking, optical resources, memory, everything thrown in,” he added at the time.
The multinational based out of Santa Clara, California is broadly expected to improve its gross margin to 75% in Q3.
Nvidia shares now pay a dividend as well which adds up to the list of reasons to have them in your portfolio.
NVDA could sink following the release of Q3 earnings
Vivek Arya finds it premature to worry about a potential slowdown in AI scaling – a sentiment that Kevin Mahn of Hennion & Walsh echoed on CNBC’s “Worldwide Exchange” on Monday.
I think Nvidia will remind investors once again that the AI revolution is alive and well this week.
He agreed a stronger US dollar under the Trump administration could be a headwind for multinationals but said NVDA “will show continued strong demand for their Blackwell chip” next year.
Nvidia will then launch Rubin to significantly enhance AI computing power in early 2026.
So, Nvidia stock remains well-positioned for the long term, as per Kevin Mahn.
Analysts currently expect Nvidia to guide for $37 billion in revenue for its fiscal fourth quarter on November 20th.
It’s worth mentioning, however, that Nvidia shares could temporarily sink after the release even if it comes in ahead of expectations for the quarter as well as the future outlook.
The Nasdaq-listed firm topped quarterly estimates and issued a better-than-expected guidance in August. Still, its stock price lost as much as 6% following the earnings report.
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