This week, all eyes will be on Nvidia Corp. (NASDAQ: NVDA), as it prepares to report its quarterly earnings at the 20 th.
This artificial intelligence behemoth is expected to double its datacenter business in Q3.
Nvidia’s third quarter revenue is expected to be $33.2 billion, which is equivalent to a profit of 74 cents per share. This represents an increase of 83% in both the top and bottom line.
The chipmaker is expected to report a solid quarter following the close of the market on Wednesday.
Could this be the catalyst Nvidia needs to extend its 200% rally year-to date? Analysts certainly seem to agree.
Nvidia stocks down on Blackwell delays
Nvidia’s shares are down this morning after a report claiming that its latest AI chips tend to overheat servers.
Vivek Arya, a Bank of America Analyst, remains extremely bullish about NVDA. Blackwell issues are likely to be only temporary. He is convinced that the demand for Nvidia products will continue to be strong in 2025.
In a recent interview, he even called Nvidia’s stock “undervalued”, based on its price-to-cash flow ratio of close to $140.
“They are a system integrator now.” They are selling complete racks that include all the computing, network, optical resources, and memory,” he said at the time.
The multinational based in Santa Clara, California, is expected to improve its gross profit margin to 75% by Q3.
Nvidia shares are now paying a dividend, which is another reason to include them in your portfolio.
NVDA could fall after the release of Q3 earnings
Vivek Arya believes it is premature to worry about a possible slowdown in AI scale. Kevin Mahn, of Hennion & Walsh, echoed this sentiment on CNBC’s ‘Worldwide Exchange’ on Monday.
This week, I expect Nvidia to remind investors that the AI revolution continues.
He acknowledged that a stronger US Dollar under the Trump administration might be a headwind to multinationals, but said NVDA would “show continued strong demand for its Blackwell chip” in 2019.
Nvidia will launch Rubin in early 2026 to significantly increase AI computing power.
Kevin Mahn says that Nvidia’s stock is well-positioned to grow over the long term.
Analysts expect Nvidia’s fiscal fourth quarter to end on November 20 .
Nvidia’s shares may temporarily fall after the release, even if the results are better than expected for the quarter and the future outlook.
The Nasdaq listed company surpassed quarterly estimates and provided a better-than expected guidance in August. The stock price dropped as much as 6 percent following the earnings report.
This post Nvidia Q3 Earnings Preview: Is NVDA stock overvalued before results? This post may be updated as new information becomes available
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