Nvidia's Earnings Report: A Pivotal Moment for AI and Market Trends

Nvidia's options primed for $300-billion price swing after earnings

NEW YORK (Reuters) - Options traders are primed for a nearly $300-billion swing in Nvidia's market value following the chipmaker's quarterly results on Wednesday, U.S. options market data showed. Nvidia options implied an 8.5% swing for the shares in either direction following the results, which will be reported after markets close, according to data from options analytics service ORATS. That is in line with previous percentage moves following results over the last 12 quarters. But with the AI-chipmaker's market cap having grown to $3.44 trillion, the expected swing in market value is close to the biggest ever, at about $292 billion. A move of that size would dwarf the market cap of about 95% of S&P 500 constituents. Post-earnings moves in Nvidia's shares have typically undershot market expectations. Larger-than-expected moves, however, have tended to be to the upside, said ORATS founder Matt Amberson. Of the last 12 quarterly earnings reports, five post-earnings moves have been outside what has been expected by the market. Of those, all have seen the stock price go higher, Amberson said. Christopher Jacobson, a strategist at Susquehanna Financial Group, wrote on Monday that traders are assigning a slightly higher probability to an outsized move to the upside than to the downside. Results for the chipmaker - which is at the heart of the generative artificial intelligence boom - could be a key factor in determining the market's trajectory. Investors are turning their focus to Nvidia following a post-U.S. election rally that has stalled in recent days. The S&P 500 is up 23% year-to-date despite a decline last week. "The market will extrapolate whatever Nvidia says to the entire AI trade," said Nancy Tengler, CEO and chief investment officer at Laffer Tengler Investments, in a note. Nvidia has bested lofty Wall Street revenue expectations for the past eight quarters. But with analysts expecting a slower pace of growth, how the company overcomes delays and supply-chain issues is likely to be an important factor for its stock price. The chipmaker is expected to report third-quarter sales surging 82.8% to $33.13 billion, according to data compiled by LSEG. On Monday, Nvidia shares finished down 1.3% to $140.15. For the year, the stock is up about 180%, making it one of the top performers in the S&P 500 index. (Reporting by Saqib Iqbal Ahmed; Editing by Ira Iosebashvili and Rod Nickel)

Nvidia stock might explode after Nov. 20: Here's why

Artificial intelligence chipmaker Nvidia is poised to announce its third-quarter fiscal 2025 results on November 20. According to analysts, Nvidia is set to showcase impressive growth, with earnings expected at $0.75 per share and revenue predicted to reach $33.09 billion, reflecting an 88% and 82.6% year-over-year increase, respectively. The company has seen its stock price surge over 180% in the past year, affirming its status as a leading performer in the AI sector. On November 20, Nvidia (NVDA) will report its financial results for Q3 FY25, which concluded in October 2024. The expected strong performance is attributed to robust demands for its current generation of GPUs and a solid consensus among analysts, including a significant boost in earnings estimates. Initially, Nvidia guided for revenue of approximately $32.5 billion, but analysts now project a higher figure. Since the company released its guidance, analysts have raised profit forecasts, and the consensus earnings estimate is now $0.74 per diluted share. Over the past week, analysts have maintained their positive outlook, suggesting growing confidence in Nvidia's capabilities, especially in the AI and data center markets. Nvidia's hardware and software positions it well to leverage opportunities in the rapidly evolving AI landscape. Analysts have collectively raised their price targets, suggesting an average of around $156, which indicates a potential 10% upside from its current share price of $142. Tesla's stock gest a 7% boost as Trump turns up the heat on self-driving Nvidia's anticipated growth is underpinned by three key factors. First, the company is likely to provide a promising update regarding its Blackwell GPUs. With over 80% market share in AI accelerators, Nvidia's GPUs are integral to modern AI functionalities. CEO Jensen Huang previously stated that the Blackwell launch could be the most successful in the company's history. Nvidia's production ramp begins this quarter, with a backlog of orders extending for a year, signaling strong demand. Second, Wall Street analysts have revised their earnings estimates upwards. The anticipated revenue increase highlights sustained demand for Nvidia's existing Hopper GPUs, which indicates solid momentum leading into Q4. Finally, significant capital investments in AI by tech giants like Alphabet, Amazon, Meta Platforms, and Microsoft are creating a favorable environment for Nvidia. These companies have expressed intentions to substantially increase spending on capital expenditures through 2025, which should bolster demand for Nvidia's products. Investor sentiment remains largely bullish. Analysts have pointed to Nvidia as an attractive investment option, reflecting confidence in the company's growth trajectory, particularly in AI and data center segments. Despite a stellar stock rally, analysts continue to highlight Nvidia's strong upside potential, as evidenced by the consensus of 39 Buy ratings and three Hold recommendations over the past three months. However, challenges remain on the horizon. Some bearish analysts caution against potential excess inventory, rising competition from in-house solutions, and regulatory scrutiny, including an investigation by the U.S. Department of Justice. Furthermore, the Blackwell supply chain has raised concerns about short-term margin pressures and production difficulties. Options traders are anticipating a notable move in Nvidia's stock post-earnings, projecting an expected movement of 9.83% in either direction. This illustrates the market's expectations for volatility following the release of the financial results.

Nvidia earnings key to near-term market trend after reversal week: Berman

With the U.S. election out of the way and Donald Trump's administration filling out, the market will turn to Nvidia Corp. (NASDAQ: NVDA) earnings this week to see if animal spirits can keep the party going. I'm very bullish on artificial intelligence (AI) and the productivity enhancements it can bring. Part of me is terrified by the other things it can unleash in terms of being able to trust what you see and hear on social media, but I will leave that for another day. I've seen many examples of video and stills that look real, but were created by AI and I mostly could not tell the difference. You probably have experienced this too. But for the most part, it's exciting and beneficial. On the investment side, my company is investing as heavily as it can and likely will help us make better trades and security selection decisions. It can help with forecasting economic and market conditions. It can help tilt the odds of success a bit more in our direction. The next two hires on my investment team will be AI-enabled coders. For the industry leader like NVDA, it has huge potential in the coming years to be sure. However, we were at a venture fund - that we invest in - conference last week and they talked about one of the portfolio company's quantum computing technology offering that's not too far off that may significantly eat into NVDA's market share. To be sure, we can't time it or know when that shift will happen, but it will. There is always a new technology coming. NVDA has had some challenges with fabrication capacity, quality control, and most recently reports of chips overheating. So idiosyncratic risks are high. NVDA is now 8.7 per cent of the QQQ (NASDAQ 100 ETF). It recently passed Apple and Microsoft to be the largest holding. Looking at the chart of the QQQ since the pandemic low, we see a clear trend channel that has found resistance at the top of the channel in July, creating an important high. That high was broken on the post election rally and was tested last week on the pullback. Will it hold? The NASDAQ 100 was down five days in a row last week and that has not happened since 2022. When we add the bearish RSI divergence we can see in the chart (loss of bullish momentum), we get a sense of how important NVDA's earnings are this week for the markets overall. Based on at-the-money (ATM) options pricing for the Nov. 22 expiry this week, at the time of writing this note (9:35am using NVDA 139/140, Nov. 18), the options market makers are expecting about a US$11 move up or down on earnings. This is best estimated by taking 85 per cent of the ATM long straddle (buying a put and call at same price). Last week's reversal on the QQQ with all the noise around Tesla and that a Trump administration may go hunting for the big cap tech behemoths where the founders may have been supporting the Democrats clouds this analysis. What is clear is the large cap behemoths are expensive and have shown correction risk at these levels before.

Nvidia Stock Could Soar Between 10% and 28%, According to Select Wall Street Analysts. Is the Stock a Buy Before Nov. 20? | The Motley Fool

Analysts from UBS and Morgan Stanley just raised their price targets on Nvidia stock. On Wednesday, Nov. 20, the entire investment community will be anxiously awaiting one critical piece of news. No, I'm not talking about a Federal Reserve meeting or an update regarding jobs growth. Next week the poster child of artificial intelligence (AI), Nvidia (NVDA 0.34%), is scheduled to report third-quarter earnings results. I've said this many times before, but just to reiterate my stance on Nvidia, I see the company as the ultimate measuring stick for the health of the AI market. If Nvidia reports positive news (which tends to be the case), an upward movement in the stock has the power to positively impact the entire capital markets. I'm going to break down what's on the line for Nvidia at the moment and explain why this upcoming earnings report is so important. Moreover, I'll share some recent analyst price targets that have been published as the earnings report approaches. Generally speaking, equity research analysts use quarterly earnings reports as a chance to speak with management teams and assess the current picture -- from catalysts to operational challenges, and everything in between. Subsequently, investment banks tend to release updated reports and price targets estimates based on their analysts' research. While some analysts will publish an updated investor note before an earnings call, it's not too common. However, just this week analysts from Morgan Stanley and UBS raised their price targets on Nvidia stock to $160 and $185, respectively -- implying upside between approximately 10% and 28% as of market close on Nov. 11. During a typical earnings report, investors tend to focus on metrics such as revenue, gross margin, and profitability. But Nvidia's earnings report next week is going to be anything but typical. Over the last several weeks, Nvidia's cohorts among big tech have made it clear that additional investment in AI infrastructure is on the horizon. Dan Ives of Wedbush Securities is even calling for more than $1 trillion in AI capital expenditures (capex) over the next few years. In some ways, investors could interpret this capex spending cycle as a proxy for Nvidia's growth prospects. The big question investors should be looking to answer is just how much of a tailwind will these increased infrastructure investments represent for Nvidia? This is where management's financial guidance comes into play. The big talking point on next week's earnings call is going to be the launch of Nvidia's new Blackwell GPU. Morgan Stanley is projecting sales from Blackwell to be at least $10 billion this year, and Nvidia CEO Jensen Huang has more than suggested than demand for these new chipsets is already outpacing supply. While this all bodes well for Nvidia, keep in mind that the company is rumored to be moving order flow away from one its key partners, Super Micro Computer, as challenges at the IT architecture specialist continue to mount. At the risk of coming across a little jaded, I'm suspicious of Blackwell's current momentum. While I think these new GPUs will become a smash success for Nvidia, I can't help but feel that any operational hiccup related to manufacturing and production could put a dent in the Nvidia rocket ship in the near term. One of Warren Buffett's most famous adages is to be fearful when others are greedy, and to be greedy when others are fearful. In my eyes, investors may be getting a little greedy with Nvidia stock. Take a look at the timeline below to understand my reasoning: In my opinion, I think Nvidia stock will likely rise following its earnings report next week. But I'm far less concerned about a short-term jolt and much more focused on the long-term narrative. In my eyes, AI is here to stay and Nvidia will likely continue to be a prominent pillar supporting artificial intelligence. But when you consider the price changes above, I'm hard-pressed buying into the notion that Nvidia stock could rise by several hundred percentage points again. As I wrote recently, Nvidia stock is starting to exude the qualities of a lucrative trade as opposed to a long-term buy-and-hold position. With all of this in mind, I'm more comfortable listening to Huang and the team next week and determining if adding to my Nvidia position makes sense after that.

Nvidia Stock Has Done This After Its Last Four Quarterly Results. Here's What It May Do After Nov. 20 | The Motley Fool

Nvidia (NVDA -1.29%) stock's stellar rally is set to be tested when the semiconductor giant releases its fiscal 2025 third-quarter results (for the three months ended Oct. 27) on Nov. 20, as investors and analysts will be expecting the chipmaker to continue its artificial intelligence (AI)-fueled surge. After all, shares of Nvidia have shot up a remarkable 196% so far in 2024, as of this writing, and they command a rich valuation. In this article, I will take a look at how Nvidia stock has performed following the release of its previous four quarterly results before checking what lies in store for investors when it releases its next set of results. The following chart summarizes the market's immediate reaction to Nvidia's previous four quarterly reports. Source: Nvidia's quarterly earnings releases and Yahoo! Finance historical price data. When Nvidia released its fiscal 2024 Q3 results a year ago, the stock fell thanks to concerns about the company's business in China on account of restrictions by the U.S. government on exports to the country. The market overlooked the company's better-than-expected results and impressive guidance at that time. However, the next two quarterly reports gave Nvidia stock a nice boost as the company continued its string of healthy growth in revenue and earnings thanks to the solid demand for its AI graphics processing units (GPUs). However, when Nvidia released its previous quarterly results in August this year, investors seemingly took issue with the relatively slower pace of growth that the company reported. It is worth noting that Nvidia's revenue growth in the second quarter of fiscal 2025 was a deceleration over the growth that it delivered in the previous three quarters. Of course, the company did more than double its revenue on a year-over-year basis, and its earnings also surged impressively, but Wall Street had gotten used to much stronger growth in its top and bottom lines by that time. On top of that, Nvidia guided for fiscal Q3 revenue of $32.5 billion, which would translate into a year-over-year increase of almost 80%. So, the chipmaker's guidance indicates that its top line won't be doubling from the year-ago period when it releases its results on Nov. 20. However, the bigger picture is that Nvidia stock has tripled in the past year after taking into account the immediate fluctuations in price following its quarterly results. That's not surprising, as the recent market developments have made it clear that the company continues to remain the dominant player in AI chips, a market that's showing no signs of slowing down. Investors, therefore, would do well to focus on the bigger picture when Nvidia releases its quarterly report. The relative slowdown in Nvidia's growth from the prior quarters is logical, considering that the company now has a much higher revenue base. Even then, an 80% jump in quarterly revenue is no mean feat, especially considering that rivals such as AMD have found it difficult to make a notable dent in the AI chip market and are having difficulty taking share away from Nvidia. For example, AMD's revenue in the third quarter of 2024 was up 18% year over year to $6.8 billion. The company's data center business recorded a year-over-year jump of 122% in revenue to $3.5 billion. That pales in comparison to the 154% year-over-year increase in Nvidia's data center revenue in fiscal Q2 to a massive $26.3 billion. In other words, Nvidia is growing at a faster pace than AMD despite having a larger revenue base. That's because the company is the leading supplier of AI chips, with a market share of as much as 95%. More importantly, that dominance seems set to continue as the demand for Nvidia's new generation of Blackwell AI processors is set to exceed supply in 2025, which is not surprising as these chips are expected to maintain their technological advantage over AMD's offerings. Analysts are upbeat about the sales of Nvidia's Blackwell processors, with a report by Morgan Stanley (via Tom's Hardware) suggesting that the company could sell $200 billion worth of these chips next year. If that indeed happens, Nvidia's revenue in the next fiscal year could turn out to be well ahead of expectations. As per the above chart, Nvidia's top line is expected to more than double in fiscal 2025 from last year's reading of $60.9 billion. Analysts are forecasting another jump of 43% in its revenue next fiscal year, but the strong demand for Blackwell could help it exceed that mark handsomely. So, if Nvidia delivers a better-than-expected outlook for the current quarter on account of the successful launch of its Blackwell processors, it could set the stage for more upside in this AI stock even after the terrific gains it has clocked this year.

Should You Buy Nvidia Stock Before Nov. 20? Wall Street Has a Compelling Answer. | The Motley Fool

The chipmaker is set to report what are arguably its most crucial results in recent memory. One of the most profound changes in the tech landscape over the past couple of years has been the advancements in the field of artificial intelligence (AI). There's a strong argument that the advent of AI early last year was one of the biggest sparks that set off the current bull market rally. ChatGPT heralded the advent of generative AI, and since its release in November 2022, the S&P 500 has jumped 46%, while the Nasdaq Composite has surged 67% (as of this writing). While there have been plenty of beneficiaries of these secular tailwinds, one of the most notable has been Nvidia (NVDA -3.26%). In a nutshell, the company's graphics processing units (GPUs), which were originally developed to craft lifelike images in video games, proved equally adept at powering AI models. The resulting run on Nvidia's chips fueled incredible financial results and sent the stock into the stratosphere. Since the beginning of last year, Nvidia stock is up more than 900% (as of market close on Thursday), turning the company into a stock market darling. Nvidia has a lot riding on its financial results next week. Let's look at the run-up to this critical quarter, what Wall Street is saying, and what investors should expect. As technologists began to understand the implications of generative AI in early 2023, demand for Nvidia's AI-centric processors went from zero to 60 in just months. In the company's fiscal 2024 second quarter (ended July 30), the results were nothing short of astounding. Nvidia delivered record revenue of $13.5 billion, up 101% year over year, while its adjusted earnings per share (EPS) of $2.70 soared 429%. EPS in terms of generally accepted accounting principles (GAAP) were even more striking, up 854%. The next four quarters were equally impressive, with record-setting, triple-digit sales and profit growth in each one. Nvidia's fiscal 2025 second quarter (ended July 28) was the latest in the streak. Record revenue of $30 billion jumped 122% year over year, while adjusted EPS of $0.68 soared 152%. It's worth noting that investors had concerns about Nvidia's gross margin, which ticked lower, but that was from a record high set in the second quarter. Astute investors knew the company's triple-digit streak would eventually come to an end, and management suggested that time has come. For the soon-to-be-announced third quarter (ended Oct. 29), Nvidia is guiding for revenue of $32.5 billion, which would represent year-over-year growth of 79%. That would mark a distinct slowdown compared to its recent growth rate, and the stock initially sold off on the news. However, in the three months since that report, cooler heads have prevailed, and Nvidia stock is back near record highs. The biggest driver for Nvidia's future results is the upcoming release of its AI-centric Blackwell architecture. After a slow start due to production issues, management has confirmed that the chips are on track to ship by the end of the year. CEO Jensen Huang said in an interview that demand for the processors was "insane." He went on to say, "Everybody wants to have the most, and everybody wants to be first." CFO Colette Kress had previously stated, "In the fourth quarter, we expect to ship several billion dollars in Blackwell revenue." Nvidia's strong record of innovation has kept the company at the forefront of the AI revolution, and it appears that won't be changing anytime soon. Heading into Nvidia's critical report next week, Wall Street remains decidedly bullish. Analysts' consensus estimates are calling for revenue of $33 billion -- or growth of about 82%. Nvidia has a strong track record of beating its own expectations and that of Wall Street, so the results could be more robust. Of the 63 analysts who offered an opinion on Nvidia thus far in November, 94% rate the stock a buy or strong buy, and none recommend selling. The average price target of $157 suggests the stock has upside of 11%. The consensus buy rating and price target above the current stock price suggests that analysts believe Nvidia stock has additional upside, though not to the same degree as it has over the past year. However, over the past few days and heading into Nvidia's earnings report, there's been a mad dash by analysts to update their models, resulting in numerous price target increases this week (12, by my count). Every one of these price target increases has been higher than the current consensus of $157, suggesting Wall Street is getting even more bullish. The analysts were nearly unanimous in their commentary, citing the rapid adoption of AI and the build out of more robust data centers to handle the surging demand. Furthermore, most analysts believe Nvidia was conservative with its guidance, giving the company room to surpass expectations. One of the more bullish takes comes courtesy of Melius Research analyst Ben Reitzes. He maintained a buy rating on the stock and increased his price target to $185. "While it didn't seem possible, we are even more excited about Jensen Huang's next chip than we were before," he wrote in a note to clients earlier this week. For investors tempted to sell the stock, the analyst says, "Giving up on Nvidia here after its hit -- Hopper [AI chip] -- is like giving up on Apple at iPhone 1 or 2." He went on to call this a "once-in-a-lifetime opportunity," saying Nvidia is a "must own." Taken together, this suggests that Wall Street remains remarkably bullish on Nvidia's prospects -- and with good reason. Even the most conservative estimates regarding the market opportunity represented by generative AI generally start at about $1 trillion, and many are much higher. Competitors have thus far been unable to develop a solution that even comes close to Nvidia in terms of performance, so its GPUs are building the foundation of the AI revolution. To be clear, I'm bullish on Nvidia and believe the stock has much further to climb from here. That said, I'm also cognizant of the volatility that's sure to follow in the weeks and months to come. If you have any doubts, remember that earlier this summer, Nvidia stock shed 27% of its value in a few short weeks, only to come roaring back to set new all-time highs. Finally, there's the valuation to consider. Wall Street is predicting Nvidia will generate EPS of $4.16 in its fiscal 2026, which begins in late January. That means the stock is currently selling for roughly 34 times next year's earnings. While that's a slight premium, consider this: Nvidia's revenue has increased by 868% over the past five years, while its net income has risen 1,650%. This has fueled a stock price surge of 2,610% (as of this writing). That illustrates quite clearly why Nvidia is deserving of a premium. We'll know more after Nvidia reports its results after the market close on Wednesday, Nov. 20.

Nvidia earnings on deck as AI kingpin tightens grip on $1 trillion market

Nvidia shares ended lower last week, giving back around $150 billion in market value amid a broader selloff in rate-sensitive tech stocks ahead of the group's hotly anticipated third quarter earnings on Wednesday. Nvidia (NVDA) , which commands a near 80% share of the market for high-end AI-powering chips and processors, is finding that its biggest challenge isn't the technological advances of its rivals, but rather the ability of its supply-chain partners to help it meet what CEO Jensen Huang has called "insane" demand for its new Blackwell line. Blackwell chips, as a stand-alone, are said to be around two and a half times faster than Nvidia's legacy H100 chips, also known as Hopper, when they are used to train large-language AI models. And they're around five times when used to run those models in real applications, a process called inferencing. That performance, of course, comes at a price: Blackwell GPUs reportedly cost around twice as much as their H100 predecessors, at between $60,000 and $70,000 per unit, with prices reaching as high as $3 million for a fully loaded server with 72 chips stacked inside. Nvidia's broader chip architecture makes this possible, as chips can be stacked and interlocked, almost Lego-like, based on specific client needs. Blackwell is also backward-compatible with the H100, enabling customers -- if they're lucky enough to get their hands on them -- to replace legacy chips with the newer, faster and more efficient models. Lucky for Nvidia, and ultimately its investors, there's no lack of willingness among its biggest customers to spend. Nvidia GPUs: Harder to buy than drugs? Elon Musk, who runs a host of businesses alongside his obligations as Tesla (TSLA) CEO and President-elect Donald Trump's budget-slasher-in-chief, could be one of its biggest customers. His XAi startup, which aims to challenge OpenAI and its industry benchmark ChatGPT, is looking to raise around $6 billion in fresh capital, CNBC reported last week. Such a funding would value that group at around $50 billion. Part of that funding, the report indicated, will go to buying around 100,000 of the H100 chips next year. That's on top of the 300,000 he wants to buy for Tesla to replace his existing cluster of H100 chips. "[Nvidia] GPUs at this point are considerably harder to get than drugs," Musk told a Wall Street Journal CEO Council Summit last spring. He's not far wrong. Related: Nvidia to reap billions in big tech AI spending Mark Zuckerberg's AI ambitions for Meta Platforms (META) , centered on the training and inferencing of its Llama supercomputer, reportedly require around 350,000 H100 chips. Upgrading those to the faster Blackwell line, which is sold out for all of next year, won't be cheap. UBS analysts see that tally rising to $267 billion next year in what Amazon CEO Andy Jassy called a "once-in-a-lifetime" opportunity in generative AI. Total AI spending, which includes software, hardware and services, is likely to more than double to around $632 billion by 2028 from around $235 billion in 2023, according to IDC estimates. Supply challenges, however, might temper some of that demand. Taiwan Semiconductor, (TSM) the world's biggest contract chip manufacturer and a key Nvidia partner, is spending $65 billion on three new facilities in Arizona as it looks to expand its global footprint and wean itself from reliance on Asia-based production. It's also reportedly cutting off customers in China ahead of the expected export restrictions on high-end tech from the Trump administration early next year in order to find capacity. Related: Analysts revise Nvidia stock price targets as supply players update outlook Interestingly, CFRA analyst Angelo Zino thinks Nvidia, which wins at pretty much everything, is likely to find advantage from Trump's expected tariffs. "The Biden/Harris approach has been to limit China to certain advanced chips and equipment, like GPUs and" ASML-made extreme ultraviolet lithography systems, he said. "According to our Washington Analysis team, Trump may be willing to offer more advanced AI chips to other nations, even China, if the price is right while maintaining a certain technology lead." Some of Nvidia's biggest customers as well are looking for ways to hedge against the group's dominant market position and any trade, tariff or supply issues that could temper their ability to build, train and ultimately monetize their AI investments. Amazon aims to produce AI chips Amazon told investors last month that some of its cloud customers want "better price performance on their AI workloads" as they scale their operations and look to reduce costs. The e-retail and technology group is investing in its own high-performance chips, called Trainium, that it can sell directly to clients who may not wish to wait for, or pay for, Nvidia's sought-after products. Microsoft is also working up a new line of AI accelerators, which it calls the Maia 100, to train large-language models. These could both help it wean it from reliance on Nvidia and offer a lower-priced alternative to its Azure cloud customers. That seems like a longer-term play, however, as both Microsoft and Amazon would need to enter the contract chip production market in order to grow their client base to scale, and there simply isn't a great deal of capacity beyond TSMC, Samsung and New York-based GlobalFoundries. Related: Goldman Sachs analyst updates Nvidia stock price target as AI grip tightens Nvidia, meanwhile, looks set to go from strength to strength, with analysts forecasting October-quarter revenue of $33.12 billion, nearly double the year-earlier tally, when it reports after the close of trading on Wednesday. Looking into the final months of Nvidia's financial year, which ends in January, Wall Steet sees revenue in the region of $37 billion, as Blackwell sales start to hit the group's top line. By the end of the financial year in 2026, investors see Nvidia generating $185.4 billion in sales, a staggering 205% increase from 2024 levels. More AI Stocks: "We're now in this computer revolution,' Huang told a Goldman Sachs Talks event in September. "Now, what's amazing is the first trillion dollars of data centers is going to get accelerated and invent this new type of software called generative AI. "If you look at the whole IT industry up until now, we've been making instruments and tools that people use," he added. "For the very first time, we're going to create skills that augment people. And so that's why people think that AI is going to expand beyond the trillion dollars of data centers and IT and into the world of skills." Nvidia shares closed Friday at $141.98 each, falling 3.26% on the session and extending their one-week decline to around 4.45%. That still leaves the stock up more than 50% over the past six months, nearly five times the gain for the Nasdaq, with a market value of $3.48 trillion. Related: Veteran fund manager sees world of pain coming for stocks

Here's What to Expect From Nvidia on Nov. 20. | The Motley Fool

One of the most-watched events of the month -- at least in technology and financial circles -- may be what's happening on Nov. 20. Artificial intelligence (AI) powerhouse Nvidia (NVDA -3.26%) is set to offer us a look at its latest earnings figures and an update on what may be its next major growth catalyst. If investors are happy with what they see, this already soaring stock -- heading for a 186% gain this year through early last week -- could surge. The technology giant already has wowed the investment community quarter after quarter in recent times. It's beat earnings estimates for at least the past four quarters, earnings have surged in the triple digits, and it's secured gross margin levels of more than 70%. On top of this, Nvidia has achieved other successes such as being invited into the Dow Jones Industrial Average, and it even became the world's most valuable company earlier this month when its market cap surpassed that of Apple. So it's clear investors are eager to hear an update from this market leader. But we're not completely in the dark right now. Nvidia and others have offered us some clues. Here's what to expect from the AI giant on Nov. 20. First, though, a quick summary of Nvidia's path in recent times. The company sells the world's most sought-after graphics processing units (GPUs), chips that power crucial AI tasks such as the training and inferencing of models. Nvidia's GPUs stand out for their speed, and today's tech giants involved in AI projects are among the company's biggest customers -- from Microsoft to Meta Platforms. All this has translated into enormous earnings growth for Nvidia over the past few years. For example, in the most recent quarter, Nvidia reported $30 billion in revenue -- a record and a higher level of revenue than it brought in during an entire year just a couple of years ago. So the AI boom truly has helped Nvidia's earnings and share price -- the stock has soared 2,600% in five years -- to take off. Now, let's move along to what Nvidia may say during its earnings report this week. During its last report, Nvidia forecast fiscal 2025 third-quarter revenue of $32.5 billion, representing double-digit growth from the same period last year. Though this is down from recent triple-digit gains, I don't see this as a slowdown. Considering the rapid pace of growth over just a few years, Nvidia's comparison quarters are not becoming more and more difficult. The company generated more than $18 billion in revenue during the third quarter last year -- this already is an extremely high level. Nvidia also predicted that gross margins, on a GAAP and non-GAAP basis (generally accepted accounting principles), would be 74.4% and 75%, respectively, in the third quarter of this fiscal year. And Nvidia forecast gross margin for the full year in the mid-70% range. This shows Nvidia is highly profitable on its sales, and the chart shows the company's been able to maintain these levels over the past year. In the previous earnings report, Nvidia also offered us other reasons to be optimistic about the third quarter and beyond. The company said demand for its Blackwell architecture, which it expects to launch in the fourth quarter, has surpassed supply -- a clear sign that customers are flocking to Nvidia for this new platform. Earnings reports from other tech giants support this idea. "We have a wonderful partnership with Nvidia," Alphabet chief Sundar Pichai said during his company's recent earnings call. "We're excited for the GB200s, and we'll be one of the first to provide it at scale." Meta, a big user of Nvidia GPUs, in its earnings call spoke of stepping up its investment in AI infrastructure after already making it the company's biggest investment area this year. Finally, Taiwan Semiconductor Manufacturing, which produces Nvidia's GPUs, reported double-digit gains in third-quarter revenue and spoke of high demand from customers. "The demand is real, and I believe it's just the beginning of this demand," Taiwan Semiconductor chief executive officer C.C. Wei said during the earnings call. He also referred to a comment made earlier by Nvidia CEO Jensen Huang, who called demand for the new Blackwell chip "insane." These bits and pieces of evidence from other companies in the industry suggest Nvidia will talk about ongoing strong demand for Blackwell and potentially its current architecture -- Hopper -- too. (Nvidia's earlier systems continue to sell because all Nvidia products work together seamlessly, so don't become obsolete. And companies eager to build out AI invest as soon as they can in what is available at the moment.) Since Nvidia's begun its fourth quarter, the time when Blackwell is set to launch, the company might offer concrete details about how this is unfolding and speak about expectations for Blackwell revenue. Could there be any trouble spots in the report? It will be important to listen for any comments on whether troubles facing Super Micro Computer, an equipment maker and customer of Nvidia, may impact sales or distribution of Blackwell systems in the coming months. And, separately, though high demand is fantastic, Nvidia must progress along the path to eventually serve all customers. Any information on that will be welcome. That said, there are many reasons to be optimistic about Nvidia's upcoming report. Considering the company's earnings track record, comments from other heavyweights in the AI field, and the potential of Blackwell, we could be heading for yet another big moment for the stock and investors.

Prediction: Nvidia Stock Is Going to Soar After Nov. 20 | The Motley Fool

Nvidia is scheduled to report third-quarter earnings on Wednesday, Nov. 20. Even though it's only half over, November has already been a busy month. In addition to the U.S. presidential election and a Federal Reserve meeting that came with another reduction to prime lending rate, companies across all industries have been reporting third-quarter earnings over the last few weeks. But the month's busyness is far from over. Nov. 20 is another important date, especially for semiconductor stock Nvidia (NVDA -3.26%), as it reports third-quarter earnings then. Here's why I think the stock is set to soar following the report and my reasoning for my recommendation on what to do if you are considering buying it. Is it a buy? Read on to find out. As an investor in many technology stocks, I've spent a good bit of time over the last several weeks combing through earnings reports for artificial intelligence (AI) companies. The first stocks I analyzed were the "Magnificent Seven" -- Microsoft, Alphabet, Apple, Meta Platforms, Amazon, Tesla, and (of course) Nvidia. The only Magnificent Seven member that has not yet reported earnings this season is Nvidia. That will change this week. With Nvidia scheduled to report third-quarter results on Nov. 20, all eyes are going to be focused on the AI darling's progress. The chart below illustrates movements in Nvidia's share price between November 2022 and November 2024. The line in the graph is annotated to include Nvidia's earnings reports, which are depicted by the purple circles. The big-picture idea seen above is that Nvidia stock has gained significantly over the last two years. A share price return of nearly 1,000% in just two years is not the status quo. Clearly, the AI narrative has played a big role in Nvidia's stock price gains for the last couple of years. However, the bigger idea that I'd like to emphasize is that there tends to be notable volatility in Nvidia stock leading up to the time of earnings. This upcoming report is no different -- between Nov. 1 and Nov. 13, shares of Nvidia have gained 8%. That's a pretty big move in a two-week time period. If history is any indicator, I'd say there is more than an even chance that Nvidia stock soars following its earnings report next week. There is a lot on the line for this particular report, and I'd caution investors against getting caught up in momentum-driven narratives. One of my beliefs about Nvidia's earnings report next week is that few investors are going to place much weight on the company's third-quarter results. Rather, I think the overwhelming majority of investors are going to be honed in on one thing: future guidance. In particular, Wall Street analysts are going to be dialed in on the progress of Nvidia's upcoming launch of the Blackwell GPU architecture. So far, the entire narrative surrounding Blackwell has been nothing but positive -- with some reporting that the new chipsets are already sold out for the next year. However, some recent financial issues over at Super Micro Computer could wind up evolving into a bigger problem for Nvidia. Following a string of disruptions over at Supermicro, rumors are swirling that Nvidia is routing Blackwell orders away from its key partner in favor of other IT infrastructure specialists. These are only rumors and hopefully more will be learned in the report or the conference call that follows its release. I do not have a crystal ball that can tell me how Nvidia stock will move after the company reports earnings next week. On the one hand, it's widely known at this point that demand for Blackwell is through the roof. Morgan Stanley is even forecasting $10 billion in sales from the new product by the end of the year. To put that figure into perspective, Nvidia barely generated $10 billion in revenue for the entire year back in 2020. If investors learn next week that Blackwell is tracking to plan, then I surmise there will be a positive reaction that's reflected in the stock price. If by chance the Blackwell guidance exceeds expectations, then look out -- Nvidia stock could rocket to a new high. But with all of this said, I am wary that a decision to move on from Supermicro may have come too late. While I am not too worried about Blackwell's long-term success, I think any near-term headwinds Nvidia experiences could give an opening to the competition. If I am right, Nvidia could be looking at an unwanted road bump in its supply chain which could take a toll on near-term growth prospects and result in a sell-off in the stock. While I ultimately remain optimistic about Nvidia's report next week, I'd encourage investors to remain on the sidelines -- especially considering how much the stock is already moving leading up to the earnings call. There is just too much riding on this report, and not enough concrete information regarding Blackwell has been disclosed. I think buying Nvidia stock prior to next week's report is a move more aligned with a day trader as opposed to a long-term investor.

Will Nvidia Soar After Nov. 20? The Evidence is Piling up and it Says This.

The S&P 500 is rallying toward a 25% increase this year, and many growth stocks have greatly contributed to the gain. The one that stands out, though, is Nvidia (NVDA -3.26%). It's become a stock market star thanks to its leadership in the artificial intelligence (AI) chip market, holding about 80% share. AI customers have been flocking to Nvidia for its AI chips and related products and services, and this has helped earnings soar in the triple digits quarter after quarter. And speaking of quarterly performance, investors now are turning to one particular event set to unfold in just a couple of days. Nvidia plans to report fiscal 2025 third-quarter earnings on Nov. 20. We might be optimistic since the company has a track record of surpassing expectations and has recently spoken of "insane" demand for its products. Still, Nvidia already has climbed nearly 200% this year. And it's important to remember that this particular quarter may represent a transition for the chip designer, as it prepares to launch its new Blackwell architecture. Now the question is: Will Nvidia soar after Nov. 20? Evidence is piling up, and it's pointing to one particular outcome. Let's find out more. Nvidia's top GPUs So, first, let's consider Nvidia's story so far. The company's graphics processing units (GPUs) are considered the best around, and this explains why customers rush to get in on them -- and don't mind paying a higher price or waiting to get their hands on the latest version. Nvidia also sells a broad range of products and services so customers can go to the company for all of their AI needs. Even better, Nvidia is present across all public clouds, making it easy and convenient to access these offerings. All of this has helped Nvidia report record revenue in recent quarters, driven by the data center business. In the most recent period, data center accounted for 87% of the company's total revenue of $30 billion. And that level of revenue surpasses full-year revenue as recently as two years ago. Importantly, Nvidia is highly profitable on its sales, with gross margin topping 70%. As mentioned, the upcoming report represents a bit of a transition for this tech giant. In the third quarter, Nvidia was preparing for the production ramp of Blackwell -- set to happen in the fourth quarter. And the company has grown revenue so much in recent years that, for the third quarter, it predicts a double-digit increase year over year -- instead of the triple-digit increases we've seen in past quarters. Some investors may see a lower growth figure as a disappointment or worry about possible headwinds that could arise during a new product rollout. These elements may weigh on Nvidia stock after Nov. 20. But more evidence points to positive stock performance following the earnings report. As mentioned, Nvidia has established a solid track record of earnings growth and has surpassed expectations for at least the past four quarters. Comments from Jensen Huang, Larry Ellison, and Elon Musk Nvidia chief executive officer Jensen Huang has spoken repeatedly in recent weeks about high demand for the new Blackwell platform. He even called the demand "insane" during an interview with CNBC. Comments from customers support this idea. Oracle co-found Larry Ellison says he and Tesla chief Elon Musk met with Huang and "begged" him for more GPUs for their projects. Finally, Taiwan Semiconductor Manufacturing, the company that manufactures Nvidia's chips, reported double-digit revenue growth for this latest quarter and spoke of high demand from its customers. All of this suggests Nvidia may have a good deal of positive news to report on Nov. 20, and that may help the stock soar in the weeks ahead. That said, it's important to remember that even amid positive news, stocks sometimes fall. Investors may consider the shares have gained quite a bit already and the good news is priced in, for example. So, it's impossible to predict short-term stock performance with 100% accuracy. What does all of this mean for Nvidia and for you as an investor? As seen here, there are plenty of reasons to be optimistic about the report ahead, and it's possible the stock will rise after Nov. 20. But even if it doesn't, that's OK. Nvidia stock still has plenty of room to run over time, thanks to the company's market leadership, financial strength, and ongoing innovation. And that makes it a fantastic AI stock to buy and hold onto for the long term.

Nvidia Stock Price Levels to Watch as Earnings Report Looms

Nvidia (NVDA) shares are in the spotlight Monday ahead of the artificial intelligence (AI) darling's quarterly results later this week and following a report that said the company's next-generation AI chips have encountered issues overheating in servers. The AI chipmaker, which is due to release its results after the closing bell on Wednesday, is expected to announce that both revenue and profit grew more than 80% from a year ago, according to analysts' consensus estimates. Investors will also be watching for updates on Nvidia's Blackwell AI chip shipments, amid concerns that supply constraints could limit the upside of the company's near-term outlook. Blackwell chips could also come under further scrutiny after The Information reported on Sunday that they have encountered overheating problems when placed in server racks designed to hold up to 72 graphics processing unit (GPUs). Nvidia shares were down 0.7% at $141 in late-morning trading Monday, after falling more than 3% earlier in the session. The stock price has nearly tripled since the start of 2024. However, since that time, the stock has gone on make new highs, but trading volumes have continued to decrease, indicating a lack of buying participation from larger market participants. Moreover, as the stock has made higher peaks since March, the relative strength index (RSI) has formed comparatively shallower peaks to create a bearish divergence, a chart signal that points to slowing buying momentum. Let's take a look at three key support levels on Nvidia's chart and use technical analysis to project a bullish price target. A breakdown below the symmetrical triangle could see the shares initially revisit support around $97, a location on the chart where investors may look for buying opportunities near the March peak, which closely aligns with the early-August low. Selling below this level opens the door for a retracement down to the $76 level, an area on the chart where the stock could encounter support from the mid-April pullback low. A technical correction in the stock could bring the $48 level into play. This area, which sits about 66% below Friday's closing price, would likely attract bargain hunters near a range of narrow consolidation that formed on the chart between July 2023 and January. If the AI investor favorite's shares continue to track higher, we can project a potential bullish target by using a bars pattern, a technique that analyzes prior trends to predict future price moves. When applying the tool to Nvidia's chart, we extract the stock's trending move from January to June and reposition it from last month's symmetrical triangle breakout point. This projects a bullish target of around $270, a location where investors may decide to lock in profits. We selected this prior move because it commenced following a breakout from a consolation period, similar to how the current move higher has started and may play out if price history rhymes. The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

Should You Buy Nvidia Stock Before Nov. 20? History Says This Will Happen. | The Motley Fool

Investors are hotly anticipating the chipmaker's next report. On Nov. 20, the market will receive perhaps the most anticipated earnings release of this season: artificial intelligence (AI) juggernaut Nvidia's (NVDA 2.09%) report for its fiscal 2025 third quarter. The company's current role in the tech world is so central that its report -- good or bad -- will have a sizable impact across the market. Some key questions loom and investors are eager to see if the numbers will match the hype. With such a big event upcoming for the chipmaker, is now the right time to buy its shares? The lion's share of Nvidia's revenue comes from the graphics processing units (GPUs) that it sells to companies like Microsoft, Meta Platforms, and Alphabet. These big tech players have laid out billions in capital expenditures (capex) over the past few years to build and upgrade data centers to meet the rising processing power demands of generative AI. While there are certainly other hardware and software vendors benefiting from that spending, a significant portion of it is flowing into Nvidia's coffers. That's why it is an excellent sign for the chipmaker that on the most recent earnings calls from its big tech customers, their respective executive teams reiterated their commitments to building more AI infrastructure. They plan for their capex levels -- already at historic levels -- to grow further next year. Capex spending is soaring for big tech companies in recent years. Meta, whose spending growth was the slowest of the three, is expecting its 2025 outlays to balloon. CEO Mark Zuckerberg said on Meta's Q3 call that capex growth would be "significant." He was adamant that the spending would be worth it. "It's clear that there are a lot of new opportunities to use new AI advances to accelerate our core business that should have strong ROI over the next few years," he said. "So, I think we should invest more there." This should be music to Nvidia's ears. The expected growth in capex could be, in part, due to the companies' plans to upgrade their chips to Nvidia's newest line: Blackwell. The rollout of the Blackwell architecture chips was delayed slightly due to some now-resolved fabrication issues. Despite the fact they haven't yet launched -- they'll officially roll out sometime this quarter -- it has been reported that there is already a year-long waiting list for the new GPUs. A successful debut for Blackwell will be crucial for Nvidia -- but all signs suggest that's already a near certainty. The Blackwell release comes on schedule with the new yearly upgrade cadence for AI chips that it announced in October 2023. Keeping up with that pace would be a tall order for any chip company. But if Nvidia can continue to release new chips each year that are meaningfully faster and more efficient than the prior models, it will be hard to unseat as the dominant player in AI chipmaking. Over the past couple of fiscal years, here's what has happened to Nvidia's stock in the weeks after its earnings reports. The average result across those eight quarters was an upward move of 7.2% over the course of a week. (Nvidia's fiscal years run ahead of the calendar year -- its fiscal 2025, now underway, will end in late January 2025.) Source: YCharts.com While this is certainly interesting, past results are no guarantee of future results. A whole host of factors affect a stock's movement after a company delivers its earnings: In some cases, a company may offer a report that is generally positive, and still see its stock fall (as happened to Nvidia last quarter). Also, the vast majority of these moves by Nvidia were preceded by strong momentum. Getting into the stock a week before earnings would have served you better. At the end of the day, however, investors shouldn't get hung up on movements over such short periods. You generally should be looking to invest with planned holding periods of five years or more. Focusing on short-term swings can lead to emotional decision-making, which generally leads to worse results over time. Nvidia is in a strong position to continue growing its business, and it's a great pick to add to a diversified portfolio, whether you choose to buy it now or after Nov. 20.

5 Words From Jensen Huang That Every Nvidia Stock Investor Needs to Hear Before Nov. 20 | The Motley Fool

Jensen Huang is extremely bullish on Nvidia's new Blackwell artificial intelligence chips. With a market capitalization of $3.6 trillion, Nvidia (NVDA -1.36%) is currently the world's largest company. It created $3.2 trillion of that value over the last two years alone thanks to surging demand for its data center graphics processing units (GPUs), which are the most popular in the world for developing artificial intelligence (AI) models. Nvidia will report its latest financial results for its fiscal 2025 third quarter (which ended on Oct. 31) on Nov. 20, and the company is forecast to deliver record revenue led by its data center segment. In an interview with CNBC last month, Nvidia CEO Jensen Huang made a series of very positive comments about the company's new Blackwell GPU architecture. He said five words, in particular, that should have every Nvidia stock investor excited ahead of Nov. 20. A substantial amount of computing power is required to develop AI models, and most businesses can't afford to build the necessary data centers because chips are so expensive. Nvidia's H100 was the go-to data center GPU for AI development for most of last year, and a single unit would cost up to $40,000. Some AI applications required tens of thousands of them. That's why well-resourced tech giants like Microsoft and Amazon are building centralized data centers and renting the computing capacity to enterprises. It's a profitable venture for them at scale, and it makes AI financially accessible to businesses that can't build their own infrastructure. Nvidia's new Blackwell architecture delivers an enormous leap in performance. The Blackwell-based GB200 NVL72 GPU system can perform AI inference at 30 times the speed of the equivalent H100 system. Each individual GB200 GPU sells for between $30,000 and $40,000, which is around the same price as the H100 when it first came out. That translates to an incredible increase in cost efficiency, meaning some of the most advanced AI models will be financially accessible to a wider range of businesses and developers. Microsoft is rumored to be the biggest buyer of Blackwell GPUs so far. It told investors it allocated $20 billion to capital expenditures (capex) during its fiscal 2025 first quarter (ended Sept. 30) alone, most of which went toward AI data centers and chips. That followed $55.7 billion in capex spending in fiscal 2024. Similarly, Amazon spent $30.5 billion on AI infrastructure in the first half of 2024, and it's on track to spend almost $45 billion in the second half, which will take its total investment to $75 billion for the year. Meta Platforms -- which builds AI data centers for its own use -- will invest up to $40 billion on infrastructure this year, and it plans to spend even more in 2025. Microsoft, Amazon, and Meta are just a few of Nvidia's top customers. Nvidia generated $30 billion in total revenue during its fiscal 2025 second quarter (ended July 28), which was a 122% increase from the year-ago period. That included $26.3 billion in data center revenue, which was up 154%. Nvidia's guidance points to $32.5 billion in total revenue in Q3, but Wall Street's consensus estimate (according to Yahoo) is currently at $32.9 billion. That means the company's own forecast might be too conservative. Considering Nvidia routinely blows Wall Street's numbers out of the water, I would expect total revenue to come in north of $32.9 billion when the company reports on Nov. 20. If that happens, Blackwell might have made a significant contribution. Huang appeared on CNBC on Oct. 10, and he made several positive comments about Blackwell. But these five words should make every investor excited: "Demand for Blackwell is insane." He also told CNBC the new chips are in full production as planned, and he explained that every tech customer wants to be first, and they all want to have the most. Blackwell shipments to customers are already ramping up. An estimate by Morgan Stanley suggests Nvidia will sell up to 300,000 GB200 GPUs in the calendar fourth quarter of 2024, and since that includes October, the company could report billions of dollars in Blackwell revenue in its upcoming report on Nov. 20. Morgan Stanley also said shipments could ramp up to a whopping 800,000 units in the first three months of 2025. In other words, sales are likely to grow exceptionally fast. Therefore, investors who already own Nvidia stock might want to hold on through Nov. 20 (and beyond). I actually predict Nvidia stock will be the best performer among all of its trillion-dollar peers next year, so investors who don't own it might want to consider taking a position.

Prediction: Nvidia Stock Will Soar After Nov. 20 for These 3 Simple Reasons | The Motley Fool

On Wednesday, Nov. 20, Nvidia will announce earnings for the third quarter of fiscal 2025, which ended in October 2024. I expect the stock to soar in the days and weeks following the report for three simple reasons. Read on to learn more. Nvidia builds the most coveted graphics processing units (GPUs) in the computing industry, as they have become the gold standard in accelerating artificial intelligence (AI) workloads. Indeed, Nvidia holds over 80% market share in AI accelerators, and Forrester Research recently wrote, "Without Nvidia GPUs, modern AI wouldn't be possible." Nvidia told investors last quarter that the production ramp for its next-generation Blackwell GPU would begin in the fourth fiscal quarter (i.e., the current one) of 2025, which ends in January 2025. Management will likely provide an update during the third-quarter earnings call, and shareholders have reason to anticipate good news. Earlier this year, CEO Jensen Huang said Blackwell would be the most successful product launch in company history. Additionally, Nvidia executives recently told analysts that Blackwell GPUs are already "booked out 12 months." That means demand for the new processors is so strong that it will take the company an entire year to work through its existing order backlog. Consequently, Nvidia will like give encouraging guidance on Nov. 20, which sould drive the stock higher. Nvidia has provided encouraging third-quarter guidance. Management said revenue would increase 80% to $32.5 billion (plus or minus 2%) due to continued demand for the current generation of GPUs, called Hopper. Management also said non-GAAP earnings would increase 80% to $0.72 per diluted share (plus or minus 2%). However, Wall Street analysts have steadily raised their third-quarter earnings estimates since Nvidia gave its initial guidance. The consensus now calls for earnings to increase 85% to $0.74 per diluted share, according to LSEG. Analysts have also raised their price targets, such that the consensus of $156 per share implies 10% upside from the current share price of $142. Wall Street analysts are not omniscient, but their insight is valuable because they have more resources than retail investors. The fact that analysts have become more optimistic ahead of Nvidia's third-quarter report is a good sign. It suggests very thorough research has uncovered signs of strong demand. That could drive the stock higher after Nov. 20. Nvidia counts all of the largest hyperscale cloud computing companies among its customers. That includes Alphabet, Amazon, Meta Platforms, and Microsoft. Those companies have not only invested aggressively in AI infrastructure throughout 2024, but also expect capital expenditures to increase next year. Some spending discussed above reflects strong demand for Blackwell. However, Nvidia also builds central processing units (CPUs) and networking equipment. In fact, the company has secured a leadership position in AI networking gear, according to Bloomberg. So, the uptick in capital expenditures further supports the idea that Nvidia will give encouraging guidance when it announces results for the third quarter. That could drive the stock higher after Nov. 20. However, the more important takeaway is that Nvidia has a key competitive advantage in vertical integration. Because the company effectively designs entire data centers, Nvidia can build systems with a superior total cost of ownership, according to Jensen Huang. That should keep the company ahead of its competitors in the coming quarters and years. Indeed, Morgan Stanley analyst Joseph Moore recently wrote, "The market tends to underestimate the difficulty of competing with Nvidia."

Will Nvidia soar after Nov. 20? Evidence is piling up and it says this.

The S&P 500 is rallying toward a 25% increase this year, and many growth stocks have greatly contributed to the gain. The one that stands out, though, is Nvidia (NASDAQ: NVDA). It's become a stock market star thanks to its leadership in the artificial intelligence (AI) chip market, holding about 80% share. AI customers have been flocking to Nvidia for its AI chips and related products and services, and this has helped earnings soar in the triple digits quarter after quarter. And speaking of quarterly performance, investors now are turning to one particular event set to unfold in just a couple of days. Nvidia plans to report fiscal 2025 third-quarter earnings on Nov. 20. We might be optimistic since the company has a track record of surpassing expectations and has recently spoken of "insane" demand for its products. Still, Nvidia already has climbed nearly 200% this year. And it's important to remember that this particular quarter may represent a transition for the chip designer, as it prepares to launch its new Blackwell architecture. Now the question is: Will Nvidia soar after Nov. 20? Evidence is piling up, and it's pointing to one particular outcome. Let's find out more. Nvidia's top GPUs So, first, let's consider Nvidia's story so far. The company's graphics processing units (GPUs) are considered the best around, and this explains why customers rush to get in on them - and don't mind paying a higher price or waiting to get their hands on the latest version. Nvidia also sells a broad range of products and services so customers can go to the company for all of their AI needs. Even better, Nvidia is present across all public clouds, making it easy and convenient to access these offerings. All of this has helped Nvidia report record revenue in recent quarters, driven by the data center business. In the most recent period, data center accounted for 87% of the company's total revenue of $30 billion. And that level of revenue surpasses full-year revenue as recently as two years ago. Importantly, Nvidia is highly profitable on its sales, with gross margin topping 70%. As mentioned, the upcoming report represents a bit of a transition for this tech giant. In the third quarter, Nvidia was preparing for the production ramp of Blackwell - set to happen in the fourth quarter. And the company has grown revenue so much in recent years that, for the third quarter, it predicts a double-digit increase year over year - instead of the triple-digit increases we've seen in past quarters. Some investors may see a lower growth figure as a disappointment or worry about possible headwinds that could arise during a new product rollout. These elements may weigh on Nvidia stock after Nov. 20. But more evidence points to positive stock performance following the earnings report. As mentioned, Nvidia has established a solid track record of earnings growth and has surpassed expectations for at least the past four quarters. Comments from Jensen Huang, Larry Ellison, and Elon Musk Nvidia chief executive officer Jensen Huang has spoken repeatedly in recent weeks about high demand for the new Blackwell platform. He even called the demand "insane" during an interview with CNBC. Comments from customers support this idea. Oracle co-found Larry Ellison says he and Tesla chief Elon Musk met with Huang and "begged" him for more GPUs for their projects. Finally, Taiwan Semiconductor Manufacturing, the company that manufactures Nvidia's chips, reported double-digit revenue growth for this latest quarter and spoke of high demand from its customers. All of this suggests Nvidia may have a good deal of positive news to report on Nov. 20, and that may help the stock soar in the weeks ahead. That said, it's important to remember that even amid positive news, stocks sometimes fall. Investors may consider the shares have gained quite a bit already and the good news is priced in, for example. So, it's impossible to predict short-term stock performance with 100% accuracy. What does all of this mean for Nvidia and for you as an investor? As seen here, there are plenty of reasons to be optimistic about the report ahead, and it's possible the stock will rise after Nov. 20. But even if it doesn't, that's OK. Nvidia stock still has plenty of room to run over time, thanks to the company's market leadership, financial strength, and ongoing innovation. And that makes it a fantastic AI stock to buy and hold onto for the long term. Adria Cimino has positions in Oracle and Tesla. The Motley Fool has positions in and recommends Nvidia, Oracle, Taiwan Semiconductor Manufacturing, and Tesla. The Motley Fool has a disclosure policy. The Motley Fool is a USA TODAY content partner offering financial news, analysis and commentary designed to help people take control of their financial lives. Its content is produced independently of USA TODAY. Don't miss this second chance at a potentially lucrative opportunity Offer from the Motley Fool: Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a "Double Down" stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Right now, we're issuing "Double Down" alerts for three incredible companies, and there may not be another chance like this anytime soon.

1 Wall Street Analyst Says Nvidia Is Going to $175. Is It a Buy Around $147? | The Motley Fool

The bulls are lining up ahead of Nvidia's earnings report next week. Nvidia (NVDA -0.80%) has been the flag bearer for the artificial intelligence (AI) investing revolution since shortly after OpenAI's ChatGPT launched in November 2022. However, attention on the stock has waned in recent weeks as investors focused more on the presidential election results. Cyclical stocks like financials, energy, and even tech potentially stand to benefit from policy changes likely under a Trump administration, as well as general hopes for lower tax rates and deregulation. However, attention is likely to return to Nvidia when it reports third-quarter earnings on Wednesday, Nov. 20. The company is already getting some favorable attention from analysts ahead of the report. Ahead of Nvidia's earnings report, Piper Sandler raised its price target on Nvidia from $140 to $175, maintaining its overweight rating on the stock and calling the stock its top large-cap pick, according to reports. That target implies a 19% gain for the stock over the next 12 months. Like much of the market, Piper Sandler's analyst seems to be responding to reports of strong demand for its new Blackwell platform. The analyst also predicted that the total addressable market for AI accelerators will rise to $70 billion next year, and expects revenue to top the analyst consensus estimate by $1.3 billion in Q3. Nvidia is now the most valuable company in the world at a market cap of $3.6 billion, largely because it remains the single best way to bet on the AI revolution. The company dominates the market for data center GPUs, and while competition from peers like Intel and Advanced Micro Devices has arrived, Nvidia seems to be extending its lead with the Blackwell platform. It has several other advantages, including its CUDA software library. High expectations are now baked into its earnings report, and the stock fell on its last report despite strong results. Investors should expect another impressive set of numbers next week. Regardless of how the stock moves, Nvidia still looks like a smart long-term bet.

Prediction: Nvidia Stock Is Going to Stall Out on Nov. 20 | The Motley Fool

For two years, no trend has created more buzz on Wall Street than the rise of artificial intelligence (AI). The ability for AI-driven software and systems to become more proficient at their assigned tasks, as well as learn new skills over time without the aid of human intervention, gives this technology seemingly limitless long-term potential. In Sizing the Prize, the analysts at PwC estimated AI would increase worldwide gross domestic product (GDP) 26% ($15.7 trillion) by the turn of the decade. A lift of this magnitude means companies up and down the AI landscape can be winners. However, no company has more directly benefited from the rise of AI than semiconductor behemoth Nvidia (NVDA -3.26%). In less than two years, Nvidia has grown from a $360 billion business that was somewhat important within the tech sector to Wall Street's most-valuable publicly traded company ($3.64 trillion market cap). Given the critical role Nvidia is playing in the AI revolution, Wall Street and investors are laser-focused on Nov. 20, which is when the company will lift its proverbial hood and unveil its operating results for the quarter ending on Oct. 27. While the optimism surrounding Nvidia is thick enough to cut with a knife, I can offer a half-dozen reasons Nvidia stock will hit a brick wall on Nov. 20. Before digging into the details of why Nvidia's stock can struggle following the release of its fiscal third-quarter results, let me provide some background that explains why Nvidia has added $3.3 trillion in market value in under two years. The heart of Nvidia's growth is its hardware. Orders for the company's H100 graphics processing unit (GPU), commonly referred to as the "Hopper," and the successor Blackwell GPU architecture, are backlogged. Businesses are eager to gain first-mover advantages, and Nvidia's AI-GPUs offer superior computing capabilities. In addition to strong demand, Nvidia is commanding stratospheric pricing power for its hardware. Whereas competing AI-GPUs are being priced in the $10,000 to $15,000 range, the Hopper has been consistently commanding a price point of $30,000 to $40,000 per chip. Businesses willingly paying a premium for Nvidia's solutions pushed its gross margin to as high as 78%. I'd be remiss if I didn't also mention the key role Nvidia's CUDA software platform has played in driving sales growth. CUDA is the toolkit developers use to build large language models and maximize the computing potential of their GPUs. In other words, CUDA is the lure that's keeping Nvidia's customers within its umbrella of products and services. With truly staggering sales growth -- $27 billion in fiscal 2023 to an estimated $180 billion in fiscal 2026 -- it's not surprising to see investors piling in. Yet there's a half-dozen reasons to believe the perfect storm is brewing for Nvidia, which needs nothing short of flawless execution to sustain its nearly parabolic move higher. When Nvidia delivers its fiscal Q3 operating results in four days, there's a good chance it'll top consensus revenue and profit forecasts. Over the last seven quarters, Nvidia has handily outpaced earnings-per-share (EPS) expectations. But simply surpassing what was expected of the company in its October quarter is unlikely to be enough to support additional upside for a variety of reasons. To start with, external competition has officially arrived. After Nvidia secured an estimated 98% of GPU shipments to data centers in 2022 and 2023, based on a study by TechInsights, it'll likely cede some of this market share to Advanced Micro Devices this year. AMD is quickly ramping up production of its MI300X AI-GPU, and recently introduced the MI325X, which should go into production before the end of the year. With Nvidia's GPUs backlogged and businesses eager to gain first-mover advantages, it wouldn't be surprising to see companies scoop up AMD's AI hardware instead. Nvidia's gross margin expansion will likely prove unsustainable as GPU scarcity diminishes. NVDA Gross Profit Margin (Quarterly) data by YCharts. To add to this second point, AI-GPU scarcity has played a critical role in lifting Nvidia's pricing power. As more chips become available and scarcity wanes, Nvidia's pricing power and gross margin will be negatively impacted. The third issue to consider is that Nvidia is still constrained by its supply chain. Taiwan Semiconductor Manufacturing, which produces chips for Nvidia, is aiming to boost its chip-on-wafer-on-substrate (CoWoS) monthly production capacity to 80,000 wafers. CoWoS is necessary for the packaging of high-bandwidth memory in AI-accelerated data centers. Being at the mercy of its suppliers means Nvidia isn't able to meet all of its orders and could cause it to lose valuable data center real estate to external and internal competitors. Fourth, export regulations offer little reason to cheer. In 2022, U.S. regulators clamped down on Nvidia's ability to export its AI-GPUs to China, the world's No. 2 economy by GDP. The following year, Nvidia's toned-down AI chips, the A800 and H800, which were designed specifically for China, were also added to the export restriction list. With President-Elect Donald Trump promising to get tough on trade with China, Nvidia's prospects of generating big bucks from exports of AI hardware to China are quickly dimming. Insider trading activity provides the fifth puzzle piece of the perfect storm for Nov. 20. Over the last 47 months, no executive or director has purchased a single share of Nvidia stock on the open market. While there are plenty of reasons to sell stock, not all of which are nefarious, the only reason to buy shares of a company is if you think they're headed higher. The actions of Nvidia's executives and directors make it clear that Nvidia stock isn't viewed as a good value. The sixth and final reason I'll be looking for Nvidia stock to hit a brick wall on Nov. 20 is history. Over the past three decades, investors have consistently overestimated how quickly a new technology or innovation will gain utility and/or adoption. This leads to lofty growth expectations that eventually (key word!) come up short. Despite ample demand for the Hopper and Blackwell, what's sorely lacking from Nvidia's customers are well-defined plans to monetize their AI investments. In other words, businesses are buying, but there's no clear use case. All technologies need time to mature, and artificial intelligence is unlikely to be the exception to the unwritten rule. In my view, this puts Nvidia stock in a precarious position come Nov. 20.

Here's what to expect from Nvidia's upcoming quarterly results By Investing.com

Investing.com - Nvidia (NASDAQ:NVDA) is due to report its latest quarterly results on Nov. 20, with investors on the lookout for any guidance from the chipmaking titan about demand for its artificial intelligence-enhancing hardware heading into 2025. Some analysts have come to view the release of the figures as equivalent in importance for markets as the US jobs report or consumer price data. Nvidia, which manufactures semiconductors that are considered to be crucial components in training and deploying AI-powered applications, has become a focal point of runaway enthusiasm around the nascent technology. Shares in the company have surged by more than 200% so far this year, a sharp rally that has also fueled its outsized impact on US stock markets. Much of the year-to-date gains in the benchmark S&P 500 has been driven by the spike in Nvidia. Big Tech players like Google-owner Alphabet (NASDAQ:GOOGL) and Amazon (NASDAQ:AMZN) are among Nvidia's largest customers, spending heavily on its products to run their own all-important AI innovations. As a result, Nvidia's earnings can serve as a gauge of the state of the AI boom, particularly at a time when investors are beginning to call for more evidence that the steep AI expenditures are leading to tangible returns. In a note to clients, analysts at UBS led by Timothy Arcuri said that while these worries remain a major source of debate, recent growth at Google's search and cloud divisions as well as evidence of cost savings from Amazon's use of AI are both "encouraging signs." CEO Jensen Huang said in August that demand for Nvidia's current-generation Hopper chips was "strong," although the company's guidance for third-quarter revenues of $32.5 billion -- plus or minus 2% -- was only slightly above Wall Street projections. Analysts noted that, due to Nvidia's recent track record of far outpacing expectations, even a modest beat was enough to disappoint investors. Meanwhile, Chief Financial Officer Colette Kress laid out a timeline for the production of Nvidia's next-generation Blackwell chips. Kress said output of the processor -- which was delayed earlier this year -- is now tipped to ramp in the fourth quarter and continue into Nvidia's 2026 fiscal period. "In the fourth quarter, we expect to ship several billion dollars in Blackwell revenue," Kress said. According to analysts at Piper Sandler, Nvidia executives are likely to make further comments about "extremely strong demand" for the Blackwell chips when the firm reports its third-quarter numbers. Despite supply constraints that are expected to last into the first half of 2025, the processors are seen delivering $5 billion to $8 billion in revenue in Nvidia's January quarter, the analysts estimated. "As supply improves, we see more customers coming on for Blackwell beyond initial hyperscaler adoption in the following April quarter," the analysts wrote in a note.

3 Reasons to Buy Nvidia Stock Before November 20 | The Motley Fool

The artificial intelligence (AI) titan powering a market boom has a lot of questions to answer. How is it dealing with the recent issues at one of its key suppliers? Is the release of its newest Blackwell chip going according to plan? We'll learn more on Wednesday, but there are plenty of reasons to buy Nvidia's stock ahead of time. While there's always a chance something disappointing could be revealed, Nvidia currently appears to be in too strong a position to meaningfully change its trajectory over the long term. Here are three reasons why Nvidia's stock is a buy today. We'll learn more about Blackwell's release, but all signs point to a successful rollout of Nvidia's newest iteration chips. There was a hiccup earlier this year when reports of fabrication issues spooked investors. It's now clear that Nvidia handled the issue swiftly, and what could have been a significant delay was only a month or two. Blackwell is set to be delivered to customers shortly. The chips are a significant upgrade to the already uber-powerful Hopper chips, which still appear to be selling extremely well despite the imminent release of their successors. Elon Musk and his xAI team bought 100,000 Hopper chips just a few months ago and are in the process of purchasing another 50,000. It's a great position to be in when the demand for current and future iterations is at a fever pitch. It's been reported that Nvidia is sold out of Blackwell for at least 12 months following its release. Nvidia CEO Jensen Huang described the demand as "insane." The company is partnering with Foxconn in order to meet that demand, opening a new Blackwell-specific fabrication plant in Mexico. Taking a look at recent big-tech earnings calls from Nvidia's top customers, it's clear the money is still flowing. Tech giants like Microsoft, Meta, and Alphabet are spending billions building data centers that can handle the demands of AI. The capital expenditure (capex) of these companies rose sharply over the last year, with much of it flowing into Nvidia's coffers. The trend will likely continue. Meta aims to significantly boost its 2025 capital expenditure, with CEO Mark Zuckerberg emphasizing the potential for a substantial return on investment (ROI) from AI advancements and even suggesting that capex needs to grow further. Alphabet spent $13 billion last quarter building data centers and expects the same in Q4, putting it on track to top $50 billion in capex for the year. Free cash flow (FCF) is a critical measure of a company's financial health, and Nvidia has a lot of it. Look at the explosion in FCF over the last few years compared to its rival AMD. That is a major divergence. FCF can be used for all sorts of things that either boost a company's ability to do business or enrich its shareholders, often both. It gives Nvidia immense resources to respond quickly and effectively to the market and critically defend its market dominance. As AMD and others try to keep pace, Nvidia can deploy this capital to outspend its competition significantly on, say, more R&D or poaching talent. At the same time, FCF can be used to repurchase shares, and that's exactly what Nvidia has been doing. Over the course of the first half of the year, it repurchased $15.1 billion in stock, and last quarter, announced the board had approved $50 billion in additional stock buybacks. On Wednesday, we'll see just how much of the $50 billion they've used. It's clear, however, that the company is committed to doing its part to reward its shareholders.

Nvidia's surge far from over as AI train is back on track: HSBC By Investing.com

Investing.com - Nvidia (NASDAQ:NVDA) is due to report its latest quarterly results on Nov. 20, with investors on the lookout for any guidance from the chipmaking titan about demand for its artificial intelligence-enhancing hardware heading into 2025. Some analysts have come to view the release of the figures as equivalent in importance for markets as the US jobs report or consumer price data. Nvidia (NASDAQ:NVDA), which manufactures semiconductors that are considered to be crucial components in training and deploying AI-powered applications, has become a focal point of runaway enthusiasm around the nascent technology. Shares in the company have surged by more than 200% so far this year, a sharp rally that has also fueled its outsized impact on US stock markets. Much of the year-to-date gains in the benchmark S&P 500 has been driven by the spike in Nvidia. Big Tech players like Google-owner Alphabet (NASDAQ:GOOGL) and Amazon (NASDAQ:AMZN) are among Nvidia's largest customers, spending heavily on its products to run the data centers powering their all-important AI innovations. As a result, Nvidia's earnings can serve as a gauge of the state of the AI boom, particularly at a time when investors are beginning to call for more evidence that the steep AI expenditures are leading to tangible returns. In a note to clients, analysts at UBS led by Timothy Arcuri said that while these worries remain a major source of debate, recent growth at Google's search and cloud divisions as well as evidence of cost savings from Amazon's use of AI are both "encouraging signs." CEO Jensen Huang said in August that demand for Nvidia's current-generation Hopper chips was "strong," although the company's guidance for third-quarter revenues of $32.5 billion -- plus or minus 2% -- was only slightly above Wall Street projections. Analysts noted that, due to Nvidia's recent track record of far outpacing expectations, even a modest beat was enough to disappoint investors. Meanwhile, Chief Financial Officer Colette Kress laid out a timeline for the production of Nvidia's next-generation Blackwell chips. Kress said output of the processor -- which was delayed earlier this year -- is now tipped to ramp in the fourth quarter and continue into Nvidia's 2026 fiscal period. "In the fourth quarter, we expect to ship several billion dollars in Blackwell revenue," Kress said. Analysts at HSBC (LON:HSBA) led by Frank Lee argued that the roadmap for Blackwell production is "back on track," with the technology set to potentially contribute $5 billion to overall revenues in the fourth quarter of Nvidia's 2025 fiscal year. This should offset any possible downside in revenues from its H20 chip, they added. Although the H20 is designed specifically to comply with US export rules, the analysts flagged worries around geopolitical uncertainty hanging over China's outlook for shipments of AI graphics processing units. Still, they said Nvidia's market valuation, which is currently approaching $3.6 trillion, is "set to move further into uncharted territory." "We have pondered this amazing growth trajectory and not only do we see no signs of a slowdown, we expect further upside in [fiscal 2026] data center momentum, which in our view is still not fully priced in by the market," the analysts said.

Analysts Are Bullish on Nvidia Stock Ahead of Earnings Next Week

Analysts on average project Nvidia to report revenue growth of 82% year-over-year. Nvidia (NVDA) shares rose Tuesday after analysts at Mizuho raised their price target for the company's stock ahead of its third-quarter results due next week. The firm upped its target from $140 to $165, slightly above the analysts consensus near $160, according to Visible Alpha. Shares of Nvidia were recently up nearly 2% to about $148, not far off recent record highs. "We see [Nvidia] remaining the leader in the AI training and inference chips for data center applications," the analysts wrote, estimating that the company holds a dominant market share of nearly 95% in the space. Nvidia's third-quarter earnings, expected Nov. 20, will be the company's first as a member of the Dow Jones Industrial Average after it and paint maker Sherwin Williams (SHW) joined the blue-chip index last week. The analyst consensus has Nvidia reporting revenue of $33.07 billion, up 82% year-over-year. The world's most valuable company's stock has nearly tripled in 2024 driven by demand for the company's family of AI chips -- including its next generation Blackwell graphics processing units.

Where Will Nvidia Stock Be in 1 Year? | The Motley Fool

With earnings approaching, investors consider what the next year might hold. All eyes are on Nvidia's (NVDA -3.26%) upcoming earnings. On Nov. 20, the investing world will get a chance to hear directly from the executive team at the heart of the artificial intelligence (AI) boom. There are some critical questions I hope will be answered, like how recent events at Supermicro will affect the company's ability to ship its newest Blackwell chips on time and keep up with demand. Speaking of Nvidia, CEO Jensen Huang described that demand as "insane." The third-quarter numbers should show if that demand truly is insane. The sky-high expectations Wall Street has placed on the company mean that the degree of insanity matters. "Strong" won't cut it at this point. As observers wait for Nov. 20, let's take a look at where Nvidia might be a year from now. Wall Street's expectations are sky-high for Nvidia. To be sure, Huang's public statements tend to fuel this fire, but the fact remains that the company's stock price has continued to have success baked into it, trading at nearly 52 times forward earnings. Here's a chart showing that in relation to some of the big boys of tech. Nvidia needs to continue to grow at a hefty pace or its stock price may start to level off. To do this, the company must execute at an extremely high level -- something it has shown it can do time and again. The biggest upcoming test is the rollout of Blackwell, the newest iteration of its flagship AI chip. There were some fabrication issues earlier this summer that Nvidia seems to have ironed out, but now the company faces another challenge: Supermicro, which has been a critical part of Nvidia's supply chain. Supermicro is facing mounting allegations of misconduct, and now Nvidia is reportedly looking elsewhere for a partner. Nvidia seems to be getting ahead of this, but it remains to be seen if this has any effect on Blackwell supply. Moore's Law -- the idea that computer processors get roughly twice as fast every two years -- has long been the guiding principle in Silicon Valley. In recent years, however, the law's longevity has been in question. That's because chipmakers were reaching the limit on the number of transistors that could fit in a circuit -- the driving force behind Moore's Law. But that may be an outdated paradigm. At least Huang believes it is. Nvidia has introduced the idea of "accelerated computing" in which advances in speed and efficiency come from a whole host of factors -- networking, algorithms, software, and data center design -- rather than the single limiting factor of the number of transistors in a circuit. He recently posited that this may be the age of "Hyper Moore's Law" where speed "doubles or triples every year." It's a big statement. If it holds, the modern AI boom could be even bigger than imagined. It's a big "if" though, and remember, CEOs like making bold predictions that don't always come true. In August, Nvidia announced its board approved $50 billion in additional stock buybacks after it had already repurchased $15.1 billion during Q1 and Q2. I'm very interested to see how much capital the company deployed here and if executives will announce a continuation of them. Buybacks are typically great for investors. The caveat here is that since the announcement was made, the market may have already priced this in. If the Q3 numbers show an underwhelming repurchase, Nvidia's share price could slip. I like to reiterate that the future is impossible to predict. It's easy to get caught up in the excitement around a stock like Nvidia. That being said, all signs point to a successful Blackwell rollout with the release of Rubin -- Blackwell's successor -- on its heels. I think Nvidia will once again outperform the market and deliver strong returns.

Any Nvidia pullback due to high-expectations 'an opportunity' analysts say By Investing.com

Investing.com -- As Nvidia (NASDAQ:NVDA) approaches another earnings report, analysts at Wedbush and Raymond (NS:RYMD) James are reiterating their bullish stance on the stock, even amid concerns that high expectations could lead to short-term market volatility. Despite potential constraints, any pullback could represent a buying opportunity. In a note to clients Thursday, Wedbush said it sees Nvidia consistently exceeding forecasts, thanks to robust AI spending among hyperscale and non-hyperscale customers, which should continue into the next fiscal year. The firm anticipates that Nvidia will maintain its recent trend of beating estimates by around $2 billion. "We see no reason to shift our constructive opinion on NVDA in light of our outlook for a robust 2025," Wedbush wrote, raising its price target from $138 to $160. Raymond James shares this optimism, though it notes that supply challenges could cap immediate upside. "While demand is not an issue, NVDA's B/S inventory (DoI) is at a 4-year low," the firm said, indicating that Nvidia's complex new systems and extended cycle times may limit the scale of Blackwell GPU shipments in the near term. However, Raymond James expects Blackwell ramps to accelerate in the first half of 2025, boosted by strong demand for Nvidia's Spectrum-X networking technology. The firm raised its price target from $140 to $170 and stated that it views "any pullback due to high expectations as an opportunity." Both firms highlight that Nvidia's AI-driven growth remains well-supported, with hyperscale spending and datacenter demand expected to drive significant revenue gains into 2025. Analysts maintain a positive outlook, underscoring that Nvidia's long-term fundamentals remain intact despite potential near-term turbulence.

Nvidia Set For Major Surge To $204? Analyst Predicts Post-Q3 Boost Driven By Blackwell GPU Demand, Strong Margins - NVIDIA (NASDAQ:NVDA), Super Micro Computer (NASDAQ:SMCI)

Financial analyst Yiannis Zourmpanos has predicted that Nvidia Corp. NVDA could witness a significant stock rally, potentially reaching $204, following its third-quarter performance. What Happened: Jensen Huang's company has forecasted third-quarter revenue of approximately $32.5 billion, driven by strong demand for its Hopper and Blackwell GPUs. These GPUs are expected to bolster Nvidia's data center segment, which boasts a robust 68% operating margin. The Blackwell units, priced between $30,000 and $40,000, are in high demand, with production ramping up in the fourth quarter of 2024. Nvidia's upcoming earnings report on Nov. 20 is a crucial factor in maintaining its growth momentum. Zourmpanos highlights that Nvidia's growth is fueled by the increasing adoption of AI and data-intensive applications, reinforcing its leadership in the industry, Seeking Alpha reported on Wednesday. However, Nvidia faces potential risks from supply chain disruptions, particularly due to its reliance on Super Micro Computer SMCI for AI server components. See Also: Bitcoin, Ethereum Consolidate, Dogecoin Surges As Election Rally Takes A Breather: Analyst Says Pullback 'Typical' For Healthy Market Despite these challenges, Nvidia's technical indicators and historical data suggest a bullish trend, with a 77% chance of positive returns in November. The company's strategic investments and revenue growth position it for potential long-term value appreciation. Why It Matters: As Nvidia prepares to release its third-quarter results, analysts are closely watching the company's performance. Morgan Stanley analyst Joseph Moore anticipates a strong quarter, aligning with the Street consensus of 74 cents per share earnings on $32.937 billion in revenue. Despite being supply-constrained, Nvidia is expected to generate significant revenue from its Blackwell chips, potentially between $5 billion and $6 billion in the upcoming quarter. Furthermore, analysts predict a potential 14% rally for Nvidia, highlighting the company's strong market position and growth prospects. This optimism is driven by Nvidia's strategic focus on AI and data-intensive applications, which continue to drive demand for its advanced GPUs. Read Next: Trump Appoints Elon Musk And Vivek Ramaswamy To Lead 'DOGE,' Aiming to Slash Bureaucracy And $6.5 Trillion Federal Spending: 'We Will Not Go Gently' Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors. Image via Unsplash Market News and Data brought to you by Benzinga APIs

1 Wall Street Analyst Says Nvidia Is a "Must Own" Because of This "Once-in-a-Lifetime Opportunity" | The Motley Fool

Investors will be kicking themselves if they miss the chipmaker's next phase of growth. Nvidia (NVDA 0.34%) has had a blistering run over the past year, but it hasn't all been in a straight line. After surging 828%, the artificial intelligence (AI) chipmaker shed 27% of its value this summer, only to come roaring back to hit new heights just last week. Expectations are high going into Nvidia's fiscal 2025 third-quarter report next week, and some investors are wondering whether the stock can possibly live up to its lofty expectations. One Wall Street analyst called Nvidia stock a "must own" and believes selling now would be a huge mistake. Melius Research analyst Ben Reitzes reiterated his buy rating, boosting his price target to $185 on Nvidia stock. This represents potential gains for investors of 25% compared to Tuesday's closing price. "While it didn't seem possible, we are even more excited about Jensen Huang's next chip than we were before," the analyst wrote. He compared the anticipation to excitement ahead of the release of Apple's (AAPL 1.38%) latest iPhone -- 15 years ago. He went on to say that "giving up on Nvidia here after its hit -- Hopper [AI chip] -- is like giving up on Apple at iPhone 1 or 2." For context, since the iPhone 2 went on sale in July 2008, Apple stock has gained 3,540%. If that weren't enough, Reitzes called AI a "once-in-a-lifetime opportunity" for Nvidia. I believe the analyst has hit the nail on the head. In an interview last month, CEO Jensen Huang said demand for the Blackwell chip was "insane." He went on to say, "Everybody wants to have the most, and everybody wants to be first." Those comments suggest the future remains bright for Nvidia. The market for generative AI is expected to be worth between $2.6 trillion and $4.4 trillion over the coming decade, according to researchers at McKinsey & Company -- and Nvidia's chips underpin this paradigm shift. The stock is currently selling for 36 times next year's earnings. However, Nvidia's strong track record shows why the stock is deserving of a premium.

1 Wall Street Analyst Thinks Nvidia Stock Is Going to $178. Is It a Buy?

Shares of Nvidia (NVDA 1.18%) are close to new highs heading into the next earnings report on Nov. 20. Earnings season can lead to wild swings in stock prices, but one analyst believes Nvidia shares are worth buying now. Redburn Atlantic analyst Timm Schulze-Melander initiated coverage of the stock this week with a "buy" rating. The analyst set the price target at $178, implying upside of 21% over the current share price of $147 at the time of writing. Despite the analyst's call, here's why investors should wait until after the upcoming report before deciding to buy Nvidia shares. Nvidia must meet high growth expectations Nvidia is showing signs that it is still in the early phases of meeting demand for data center hardware to support artificial intelligence (AI) workloads. While its second-quarter revenue growth decelerated from the previous quarter, Nvidia still posted a year-over-year increase of 122% in total revenue, which is extraordinary for a leading semiconductor business. Analysts are usually more accurate in modeling a company's near-term financial performance than predicting stock price movements. The consensus analyst estimate has Nvidia's revenue growing 125% this year before increasing 44% next year, according to Yahoo Finance. The high demand for Nvidia's data center chips is expected to keep its profit margin firm, so analysts are also expecting the company to grow earnings 44% next year to reach $4.12 per share. Still, I don't see a reason to buy shares ahead of next week's earnings release. The stock's recent climb since the previous earnings report in August may raise the chance of another post-earnings sell-off. Regardless of what Nvidia reports next week, the stock will still offer long-term upside from the growth in the AI chip market, which may take several more years to fully play out. By waiting until after the news, investors can avoid any negative surprises that might send the stock down after earnings.

Expect strong Nvidia results to keep the stock moving higher: UBS By Investing.com

Investing.com -- UBS analysts said they remain bullish ahead of Nvidia's earnings report next week, expecting the AI darling to deliver strong results and guidance that could keep the stock moving higher. Accordingly, the investment bank has raised its price target from $150 to $185, implying more than 27% upside from current levels. UBS forecasts Nvidia (NASDAQ:NVDA)'s third fiscal quarter (October) revenue to be in the range of approximately $34.5 billion to $35 billion, with fourth fiscal quarter (January) guidance around $37 billion, potentially rising to $39 billion once Nvidia reports its fourth-quarter results in early 2025. Analysts led by Timothy Arcuri note that the "biggest blind spot" in its forecasts is the gross margins, which they expect to decrease by about 200 basis points in the first fiscal quarter to the 73% range. However, "anything below this could be viewed negatively by investors," they added. In broader terms, analysts point to a favorable capital expenditure (capex) environment among hyperscalers, with increasing expenditures likely to narrow the gap between their capex and Nvidia's incremental data center revenue for the calendar year 2025. UBS also highlights sovereign AI as a significant demand driver for Nvidia's products, noting that spending by large sovereign states, especially in the Middle East, could rival that of major US hyperscalers in the coming years. Although the return on all of this investment remains a key debate among investors, analysts point out several "encouraging signs." These include Google (NASDAQ:GOOGL)'s revenue growth in search and cloud sectors, Amazon (NASDAQ:AMZN)'s cost savings through the use of generative AI, and the rapid expansion of AI use cases in both public and private sectors. In their model, UBS has adjusted their revenue estimate for Nvidia's fourth fiscal quarter from approximately $37.3 billion to around $38.9 billion. This includes the expectation of mid-teens quarter-over-quarter growth in the Data Center segment to nearly $35 billion. The firm projects the Data Center's revenue growth will continue into the first fiscal quarter of 2026, exceeding $40 billion, driven by the ramp-up of the new Blackwell product. It also reflected on recent media reports regarding potential US restrictions on high bandwidth memory (HBM) shipments to China, stating that it sees a low risk of Nvidia's H20 product being affected by such bans. UBS's team believes any restrictions would likely be implemented "at the discrete module level."

Nvidia Set For Gains From AI Cloud Demand, Blackwell Launch, And Data Center Expansion: Analyst - NVIDIA (NASDAQ:NVDA)

Schafer projects Nvidia's data center revenue to surge 97% YoY, driven by AI accelerators and upcoming Blackwell chip launch. Oppenheimer analyst Rick Schafer maintained Nvidia Corp NVDA with an Outperform rating and raised the price target from $150 to $175. Rick Schafer of Oppenheimer has reiterated his bullish stance on Nvidia ahead of the company's third-quarter earnings report scheduled for November 20. Schafer anticipates substantial upside in Nvidia's October quarter results and January quarter guidance, driven by consistent demand from cloud service providers (CSPs) and enterprise clients for AI accelerators. Also Read: Nvidia Powers Tesla's Humanoid Robots With New AI Tech: Here's What To Expect In 2025 Schafer has revised his estimates upward, citing robust traction for Nvidia's Hopper AI accelerators and the initial ramp-up of the new Blackwell chips, which will likely begin in the fourth quarter. He projects that Blackwell will contribute several billion dollars in revenue for the January quarter despite ongoing supply constraints related to CoWoS-L capacity. The analyst foresees a significant acceleration in Blackwell sales by the first quarter (April), with investors modeling between 5-6 million GPUs next year. In 2025, Schafer expects the product mix to favor drop-in HGX modules and air-cooled NVL36 GB200 racks as they integrate more easily into existing data center infrastructures. He stated that liquid cooling challenges may take time to resolve. Nvidia's rack-scale solutions, which include CPUs and networking components, could offer a 10 times increase in average selling prices (ASP) compared to standalone modules. Schafer sees Nvidia's Data Center (DC) segment, which comprises 87% of total revenue, growing 9% quarter-over-quarter (QoQ) and 97% year-over-year (YoY) in the third quarter, led by the H200 chip. The broader Blackwell product line will likely ramp up in the first quarter, with future iterations like the Blackwell Ultra scheduled for late 2025. Schafer estimates that 60% of the data center sales will come from training, while 40% will be from inference. He forecasts over $10 billion in sales from sovereign AI projects this year, although this may face long-term risks from potential U.S. export restrictions. For the Networking segment, accounting for 14% of Nvidia's data center revenue, Schafer projects a 9% QoQ increase and 60% YoY growth, driven by robust Spectrum-X Ethernet switches and DPUs shipments. He expects Nvidia's next-generation Spectrum-X800 to launch in 2025, catering to large-scale accelerator clusters, followed by the Spectrum-X1600 in 2026. In the Gaming segment, which makes up 10% of revenue, Schafer anticipates 5% QoQ and 6% YoY growth in the third quarter, fueled by strong sales of discrete PC GPUs. He highlighted the upcoming launch of Nvidia's 50-series Blackwell GPUs in early 2025, alongside a 3nm PC CPU developed in collaboration with MediaTek. Schafer estimates Nvidia's free cash flow (FCF) to be $16.5 billion for the third quarter, with $97 billion projected for the full year 2025. He stated that Nvidia has $57.5 billion remaining on its stock buyback authorization, with cash and debt balances of $34.8 billion and $8.5 billion, respectively. Based on revised earnings estimates, Schafer raised his calendar year 2024, 2025, and 2026 EPS forecasts to $2.85, $4.16, and $5.04, up from previous estimates of $2.80, $3.77, and $4.51. He also increased his price target for Nvidia stock, citing improved free cash flow and a stronger balance sheet. Nvidia trades 29 times his calendar year 2026 EPS estimate, below its five-year average of 37 times. Schafer views Nvidia as a long-term buy, highlighting its leading position in AI hardware and software, strong gross and operating margins, and dominant data center ecosystem as core drivers of sustained growth. Nvidia stock surged 205% year-to-date as U.S. Big Techs splurged on their AI ambitions. Investors can gain exposure to the AI wave through Vanguard S&P 500 ETF VOO and Invesco QQQ Trust, Series 1 QQQ. Price Action: NVDA stock traded lower by 0.22% at $146.45 premarket at the last check on Friday. Also Read: ASML Projects Revenue Surge to $63 Billion by 2030, Eyes AI and Chip Market Boom Image via Shutterstock Market News and Data brought to you by Benzinga APIs

Can Top Artifical Intelligence (AI) Stock Nvidia Crush the Market in 2025? | The Motley Fool

Nvidia's biggest clients already signaled they will buy more GPUs next year than this year. Nvidia (NVDA -3.26%) consistently crushed the market over the past few years. Its outperformance becomes even more impressive when viewed over even longer time periods. However, 2025 will be a new year filled with both challenges and tailwinds. Can the stock keep up its outperformance? Expect 2025 to be a far different year than 2023 and 2024 were for Nvidia. After its latest growth spurt, its year-over-year comparisons will be starting from much higher baselines. Because of this, its revenue growth rates (at least on a percentage basis) are not going to look as impressive. In 2023 and 2024, Nvidia delivered unbelievable growth, with quarterly revenues sometimes tripling year over year. That growth was directly tied to the artificial intelligence (AI) technology boom. With cloud infrastructure hyperscalers racing to develop functional and innovative AI models, and support other businesses' AI efforts, they are working to increase the computing power at their disposal at a rapid pace. Nvidia's graphics processing units (GPUs) are among the best hardware available for providing AI processing power, it has massively benefited from this build-out. However, these hyperscalers are far from finished with their infrastructure expansions. Meta Platforms stated that its capital expenditures in 2025 will be significantly greater than they were in 2024. The major cloud computing providers also stated they are spending massive amounts on infrastructure to meet the demand. For instance, Microsoft owns the second-largest cloud infrastructure service, Azure. On its most recent quarterly conference call, CFO Amy Hood said: "We expect capital expenditures to increase on a sequential basis given our cloud and AI demand signals." With Nvidia's largest clients all signaling they will be spending more on capex in 2025 than they did in 2024, Nvidia's sales should keep growing next year. But will that be enough to allow the stock to maintain its market-beating momentum? One of the biggest hurdles for Nvidia stock will be its valuation. The market already baked a lot of future success into the current share price, so it may be difficult for the stock to rise from its current position. Nvidia's stock already trades for 35.7 times its expected earnings for its fiscal 2026 (which will end in January 2026). That would be a pricey valuation if it were the company's trailing earnings metric, and for that to become the case, Nvidia would have to meet Wall Street's expectations for the next five quarters or so while its stock price stayed essentially flat. Additionally, the massive AI computing power build-out could weaken toward the end of 2025 if the hyperscalers feel they've added enough processing power to meet demand. However, I don't think either of those things will occur. It's unclear how much computing power we'll need to reach the pinnacle of these AI models, but I doubt we'll find that limit in 2025. We're just getting to the point where these AI models are starting to be integrated, and there are still flaws with the ones available today. The arc of rising demand for AI computing power will likely stretch out past 2025, so I'm unconcerned about the potential headwind of slumping GPU demand. As for the company's valuation, however, I wouldn't be surprised if its premium starts to tick down due to "slower" growth, although the average projection from 52 analysts following the company is for revenue growth of 44% next year. This slower growth will likely decrease Nvidia's share price gains, but not to the point of being a market laggard. Nvidia's stock price won't triple like it did in 2023 and 2024. However, I think the growth case is strong enough that the stock should be able to grow by at least 10% next year, making it a stock that investors should consider buying before 2025 begins.

Is Nvidia Still a Millionaire-Maker Stock? | The Motley Fool

That said, past performance doesn't necessarily guarantee future results. Let's try to read the tea leaves to see if this iconic chipmaker is still a buy. While generative artificial intelligence (AI) has been Nvidia's latest big break, the opportunity was virtually nonexistent before late 2022, when OpenAI's ChatGPT burst onto the scene. Before that, the company experienced a series of boom-and-bust cycles as its advanced graphics processing units (GPUs) were adapted to various bubble industries. In the early and mid-2000s, Nvidia specialized in video gaming. However, the launches of Bitcoin and other cryptocurrencies created unprecedented demand for its GPUs for mining: solving complex computations to verify transactions and mint new digital coins. Eventually, both opportunities (lumped into Nvidia's gaming segment) stagnated and declined, representing only $2.9 billion of the company's fiscal second-quarter sales -- under 10% of the total. The data center segment now represents around 88% of its sales. While the company doesn't break this down product by product, most of its sales likely come from advanced AI chips like the H100 and H200, used to run and train large language models (LLMs). If LLM demand fades, much of Nvidia's recent growth will evaporate. In the worst-case scenario, Nvidia's recent AI-led growth is on the cusp of a significant slowdown, if not an all-out crash. Granted, the company's growth looks spectacular -- second-quarter revenue jumped 122% year over year to $30 billion. But this could be based on an unsustainable AI race as capital-rich tech companies overspend on chips to avoid the perception of falling behind, even if they don't expect to profit. The worst offender might be Meta Platforms, one of Nvidia's top customers. In 2024, the company expects to have $38 billion to $40 billion in capital expenditures, with much of that going to Nvidia GPUs. However, while CEO Mark Zuckerberg is confident in the opportunity, it is still unclear how the company expects to turn his optimism into returns. Unlike Amazon or Alphabet, Meta doesn't have a cloud platform to rent out its computing power to start-ups. Furthermore, its flagship LLM, Llama, is open source and free, which will make it difficult to monetize. The situation is reminiscent of Zuckerberg's last big idea: a virtual reality concept called the Metaverse that saw the company burn through around $46.5 billion with very little to show for it. Meta isn't the only tech giant with an uncertain AI business model. Electric vehicle maker Tesla is also buying massive numbers of Nvidia chips to build its Dojo supercomputer, a project CEO Elon Musk admits is a "long shot." Many of Nvidia's top clients have highly speculative AI strategies. Eventually, their shareholders could push back on all the capital spending, leading to a drop in chip demand. While there are good reasons to be cautious about the stock after its big rally, the outlook isn't all grim. Analysts continue to develop spectacular projections for the AI industry, with PwC expecting it to add $15.7 trillion to the global economy by stimulating labor productivity and consumer demand. If this is true, Nvidia's millionaire-making journey is just getting started. In the best-case scenario, the main obstacle to AI's monetization is technological limitations. And this is something Nvidia itself can overcome by providing better hardware, such as its new Blackwell-based AI chips. As the chips get faster and less energy-demanding, running LLMs will become cheaper, reducing the threshold needed to achieve profitability. With a market cap of $3.5 trillion, Nvidia is the largest company in the world. And it looks unlikely to deliver multibagger potential from this point. While it is impossible to predict the future, the bear case looks more likely because it relies on fewer assumptions. Right now, many of the company's clients aren't making enough tangible returns to justify their current AI spending. And while Blackwell chips could unlock a new bull run in the near term, longer-term investors should probably wait for a pullback before considering a position in the stock.

Jefferies sees more room for Nvidia gains amid Blackwell ramp By Investing.com

Investing.com -- Nvidia (NASDAQ:NVDA) is set to report earnings next week and analysts at Jefferies expect another strong quarter for the AI darling. The investment bank believes Nvidia will beat revenue expectations and raise future guidance, driven by the ramping up of its Blackwell processors and continued growth of the Hopper GPU lineup. In a note released Thursday, Jefferies analysts said Nvidia is likely to outperform the consensus revenue estimates of $33 billion for October, projecting a $34 billion figure, which is $1.5 billion above the company's guidance of $32.5 billion. For January, they forecast Nvidia will beat the the consensus $36.6 billion estimate with a projected $38.1 billion in revenue. Jefferies's optimism is partly rooted in the strong performance of NVIDIA's Blackwell processors, with revenue for this product expected to be around $4 billion in the third quarter and anticipated to accelerate to $9 billion in the fourth quarter. The Hopper GPUs are also expected to continue their growth trajectory, complemented by the H20 product line, which is projected to increase from $1.8 billion in the third quarter to $4.2 billion in the fourth quarter. Accordingly, analysts revised their estimates for the chipmaker. Although they acknowledge that Street estimates for the next year are rising, with some as high as $6 of earnings per share (EPS), Jefferies cautions that these forecasts might assume overly aggressive average selling prices (ASPs). "While we are very positive on the unit upside, we would highlight that many of these estimates may be baking too aggressive ASPs," analysts led by Blayne Curtis noted. As such, their own estimates are based on approximately 6 million GPU units, leading to data center revenue closer to $180-200 million, compared to buy-side expectations in the $205-215 billion range. Jefferies reiterated a Buy rating on Nvidia shares ahead of the earnings print and raised the target price from $150 to $185.

Meet the Supercharged Growth Stock That Could Make You a Millionaire | The Motley Fool

Nvidia is now targeting one of the most underserved markets to boost sales even more. It's natural for investors to feel like they have missed the boat after a stock has had a major move higher. Shares of Nvidia (NVDA 0.34%) have more than tripled in just the last 12 months, so that would qualify. It's true that past performance is not necessarily indicative of future results, but past gains also don't hinder future potential returns, either. Nvidia has more irons in the fire than just the sale of advanced artificial intelligence (AI) chips that have led to explosive revenue growth. And continued investments in Nvidia stock could still help investors make progress on the path to future wealth. Much of Nvidia's recent revenue has come from companies gobbling up any available GPUs (graphics processing units) for the massive buildout of AI data centers. Nvidia's fiscal 2024, which ended on Jan. 28, 2024, saw sales soar 126% to over $60 billion. As seen below, much of that came from the largest growth tech companies. Besides that high concentration in just a handful of companies, the U.S. dominated the construction of new data centers geographically. As of March 2024, it had nearly 5,400 data centers. Germany, the United Kingdom, and China followed with only about 500 each. India, the most populous country in the world, had just 152. But Nvidia CEO Jensen Huang has recently made a point of saying that he wants to partner with India's leading industrial and technology companies to "enable India to be at the center of this new industrial revolution" of using "data to create models generating and producing intelligence at scale for all kinds of different industries." In late October, Huang attended a fireside chat with India's Mukesh Ambani, the billionaire businessman who runs the global conglomerate Reliance Industries, with interests including energy, retail, telecommunications, and digital services. Huang expressed his desire to help transform India, with its population of nearly 1.5 billion "into a center of not just [information technology], but a center of AI." Huang confirmed in the discussion that Nvidia has over 10,000 engineers in India, and he is considering manufacturing semiconductor chips there. He said that Nvidia and Reliance have already agreed to partner to build AI infrastructure in India. It makes sense for Huang and Nvidia to focus on what could be one of the world's largest artificial intelligence markets. India has an immense amount of data and a giant population of users. Yet investors have been mainly concentrating on Nvidia's current GPU customers and perhaps overlooking India's potential. Investors who have held Nvidia stock have already had their portfolio supercharged with its returns. But those who don't own it, or would like to have a larger position, shouldn't feel like it's too late to buy Nvidia. One Wall Street analyst recently conveyed his belief in Nvidia's continued potential. Harsh Kumar of Piper Sandler has the equivalent of a buy rating on the stock. In a recent report, according to CNBC, he wrote of Nvidia's "dominant positioning in AI accelerators [and] launch of the Blackwell architecture...we see Nvidia well positioned to capture most of the incremental [total addressable market] increase while ceding only a small bit to its merchant chip competitors." My advice is not to be concerned with how far Nvidia stock has already run in the last year. It's not too late to add to existing positions or start a new one. Doing so could still help support an investor's quest to own a million-dollar portfolio.

Nvidia Q3 Earnings Preview: Analysts Forecast 88% Surge in Growth

Nvidia Corporation (NVDA) is poised to release its Q3 FY25 earnings results on November 20, with analysts projecting another standout quarter for the AI and semiconductor powerhouse. Expectations are soaring, with predictions of an 88% year-over-year (YoY) earnings growth, fueled by the company's dominance in the artificial intelligence (AI) and data center sectors. According to analysts, Nvidia is forecast to report earnings of $0.75 per share, a significant 88% increase YoY. Revenue estimates are equally impressive at $33.09 billion, marking an 82.6% surge compared to the same quarter last year. This performance underscores Nvidia's ability to ride the wave of AI demand while solidifying its position as a leader in cutting-edge technology. The stellar projections reflect Nvidia's ongoing momentum in the AI and data center markets, driven by its highly sought-after GPUs and advanced AI software solutions. This momentum has been mirrored in the company's stock performance. Nvidia's share price has skyrocketed 182% over the past year and is up 187% year-to-date, showcasing investor confidence in its growth trajectory.

Nvidia earnings preview: Another record quarter expected

Nvidia is set to announce its fiscal Q3 earnings for 2025 after US markets close on Wednesday. In the wake of a recent tech sector retreat, Nvidia's results will play a crucial role in shaping market sentiment for the remainder of the year. As the primary beneficiary of the artificial intelligence (AI) boom, Nvidia's performance is also critical to gauging the broader trajectory of the industry. Nvidia has repeatedly surpassed Apple as the world's most valuable company by market capitalisation since June. As of Monday's close, Nvidia's market capitalisation stood at $3.43tn (€3.24tn), slightly trailing Apple's $3.45tn. Despite a 184% year-to-date surge in its share price, Nvidia experienced a selloff last week amid the unwinding of the "Trump Trade". Further pressure arose from reports by The Information highlighting overheating issues with Nvidia's Blackwell processors when installed in high-capacity server racks. These concerns contributed to a further decline in Nvidia's share price on Monday. Nevertheless, Nvidia's Data Centre segment, which dominates the global AI chip supply, remains the focal point of its earnings report. Investors will pay close attention to the shipment of Blackwell chips and the company's guidance for the current quarter and the full fiscal year. Nvidia achieved record Data Centre revenue in Q2, and analysts expect this segment to reach another milestone in Q3, with sales projected to hit $29.53bn (€27.87bn). This would represent a 200% increase compared with the same period last year. Overall revenue is forecast at $33.28bn (€31.41 billion), marking an 84% year-on-year rise. These expectations align closely with Nvidia's guidance of $32.5 billion (€29.2 billion), plus or minus 2%. Meanwhile, earnings per share are expected to reach $0.74 (€0.70), an 89% increase compared to the year-ago quarter. The company continues to supply advanced AI chips to major tech firms, including Amazon, Microsoft, Alphabet, and Meta Platforms. These technology giants have been investing heavily in their AI infrastructure. "Nvidia's data centre revenue is seeing huge growth on the back of the AI spending frenzy from big tech," eToro market analyst Josh Gilbert commented in a note to clients. He added that sales will remain robust as these companies race to monetise their AI investments. However, Nvidia's gross margin slipped to 75.1% in the second quarter, down from 78.4% in the first quarter, due to rising operating expenses. Analysts expect this trend to continue, with margins likely narrowing to around 74.4% as the company anticipates a further increase in operating expenses, exceeding $3bn (€2.8bn) for the third quarter. Nvidia's Blackwell AI chips, regarded as a significant growth driver for its data centre sales, have become a central focus. These chips are expected to reduce the operating costs and energy consumption of large language model (LLM) inference by up to 25 times compared to previous offerings. Nvidia CEO Jensen Huang has highlighted the intense demand for Blackwell chips, describing it as "insane". He expects these chips to generate billions in sales during the December quarter, with orders already booked for the next 12 months. Despite the enthusiasm, concerns over overheating issues related to Blackwell processors have raised questions. The company is likely to address these concerns in its earnings report. Production of Blackwell chips, initially planned for the September quarter, was delayed to the December quarter due to unspecified design flaws. While Nvidia has not clarified the nature of these issues, the delay has sparked speculation about the potential impact on its data centre revenue and its ability to sustain growth momentum.

Nvidia to report solid earnings beat but near-term upside limited, KeyBanc says By Investing.com

Investing.com -- KeyBanc Capital Markets expects Nvidia (NASDAQ:NVDA) to "solidly beat" expectations with its upcoming third-quarter earnings report but face headwinds going into the fourth quarter. The investment bank predicts solid Q3 results from the chipmaker, driven by robust demand for Nvidia's Hopper products, with guidance for the fourth quarter likely to be slightly above consensus expectations. However, KeyBanc notes that the near-term upside for Nvidia "is likely to be negatively impacted" due to several factors. These include delays in the H20 product in China amid a shift towards domestic AI solutions, a loss of market share to AMD (NASDAQ:AMD)'s MI308, and the postponement of H200 due to the ramp-up of a competing product, Blackwell (B200). Furthermore, Nvidia's recent switch from Monolithic Power Systems (NASDAQ:MPWR) to Infineon Technologies AG NA O.N. (ETR:IFXGn) as the primary power management integrated circuit (PMIC) vendor is expected to create supply constraints, limiting the availability of GB200 NVL server racks in the fourth quarter. Reflecting these headwinds, KeyBanc has revised its fourth-quarter estimates downward, from $40.0 billion in revenue and $0.88 earnings per share (EPS) to $37.7 billion in revenue and $0.83 EPS. This adjustment is still above the consensus of $37.1 billion in revenue and $0.82 EPS. While this "lack of more meaningful upside" could weigh on Nvidia's near-term prospects, KeyBanc analysts remain bullish on the company's risk-reward profile for the long run, primarily due to "outsized GenAI growth." The firm reiterated an Overweight rating on the stock with a price target of $180. Nvidia will report earnings on Wednesday, Nov. 20, following the market close. The AI darling's shares surged 183% since the start of the year, making it the world's most valuable company.

Nvidia must show Blackwell chip can drive growth in earnings report

Nvidia CEO Jensen Huang speaks with the press during the launch of the supercomputer Gefion at Vilhelm Lauritzen Terminal in Kastrup, Denmark, on Oct. 23, 2024. Despite rising competition, Nvidia holds 80% of the fast-growing market for artificial intelligence chips as the tech industry's graphics processing unit, or GPU, of choice for making and deploying generative AI software. What investors will want to see when Nvidia reports its third-quarter earnings on Wednesday is whether it can continue to grow at a fierce rate, even as the boom in AI enters its third year. Nvidia is entering "uncharted territory" as it attempts to continue growing on a $3.5 trillion market cap, wrote HSBC analyst Frank Lee in a report this week. "We have pondered this amazing growth trajectory and not only do we see no signs of a slowdown, we expect further upside in 2026 data center momentum," Lee said in his note. He has a buy rating on the stock. Future growth will have to come from Blackwell, its next-generation chip that has just started shipping to end-users such as Microsoft, Google and OpenAI. More important than Nvidia's third-quarter results will be what the company says about demand for the Blackwell chip. Nvidia CEO Jensen Huang will likely update investors about how that is shaping up on Wednesday, and he will potentially address reports that some of the systems based on Blackwell chips are experiencing overheating issues. In August, Nvidia said it expected about "several billion" in Blackwell sales during the January quarter. "Our base case is for NVDA to ship ~100K Blackwell GPUs in 4Q, which we believe is near the low-end of investor expectations," Raymond James analyst Srini Pajjuri wrote in a note last week. He has a strong buy rating on the stock. Since Nvidia's last earnings report, the stock is up nearly 19%, capping off a stunning run that has seen the share price rise eightfold since ChatGPT was released in late 2022. Alongside the stock's rise has been a fierce increase in sales and margin, and its forward price to earnings ratio has expanded to just under 50, according to FactSet. Growth is slowing, but that is partially because Nvidia's top line is so much larger than before. Nvidia reported 122% growth in sales in the most-recent quarter. That was lower than the 262% year-over-year growth it reported in the April quarter and the 265% growth in the January quarter. Analysts polled by LSEG are expecting around $33.12 billion in revenue, which would be nearly 83% growth compared to a year ago. The company is also expected to post 75 cents in earnings per share, according to LSEG consensus estimates. Nvidia's data center business accounted for nearly 88% of sales in the most-recent quarter, taking the focus off the company's legacy computer games business. The company makes the chip for the Nintendo Switch, for example, which the Japanese video game company says is seeing major sales declines as the game console ages. Nvidia's gaming business is expected to grow about 6% to $3.03 billion, according to a FactSet estimate. Its automotive business, making chips for electric cars, is still small, even though analysts expect it to grow 38% to about $360 million in sales. But none of that will matter as long as Nvidia's data center business continues to grow at a rate that is nearly doubling on an annual basis and Huang signals to investors that the party won't end.