Nvidia () is scheduled to report results of its third fiscal quarter after the market close on Wednesday, November 20, with a conference call scheduled for 5:00 pm ET. What to watch for:
EXPECTATIONS: During its last earnings conference call, Nvidia said it saw Q3 revenue of $32.5B plus or minus 2%. GAAP and non-GAAP gross margins are expected to be 74.4% and 75.0%, respectively, plus or minus 50 basis points. For the full year, gross margins are expected to be in the mid-70% range. Current consensus EPS and revenue forecasts for Nvidia’s October-end quarter stand at 75c and $33.13B, respectively, according to data from Yahoo Finance.
BALANCED NEAR-TERM RISKS: In a research note ahead of Nvidia’s results, Evercore ISI said it sees the near-term risks as largely balanced and that it is a buyer of Nvidia. Positive set-up indicators from accelerating bookings at cloud service providers, an upward bias on hyperscale CapEx, as well as the firm’s view that near-term estimates will increase post the earnings call, Evercore adds. Negative set-up indicators include decelerating revenue growth, its read of buyside expecting a beat/raise print, and Nvidia outperforming the SPX by 172% year-to-date and by 5% over the past month. Evercore views valuation as a neutral set-up indicator, with Nvidia’s price-to-earnings of 37-times at its 8-year median.
DEMAND TRAJECTORY INTACT: Loop Capital keeps a Buy rating and $175 price target on Nvidia ahead of its results on Wednesday. There has been increased “noise” throughout the Gen AI ecosystem of late, but the firm’s analysis suggests that Nvidia’s anticipated demand trajectory remains intact, the analyst tells investors in a research note. GB200 NVL72 at material volume is really a July-September 2025 event, but it may not matter much as the amount of increased Hopper production may outweigh the amount of Blackwell forgone by the push out, Loop added.
ANOTHER BEAT/RAISE SCENARIO: Stifel raised the firm’s price target on Nvidia to $180 from $165 on Tuesday, while keeping a Buy rating on the shares ahead of the company reporting its fiscal Q3 results. Supply chain data points, as well as discussions with industry participants, remain skewed positively and the firm expects “another beat/raise scenario.” While expectations are elevated and this scenario appears to be widely anticipated given that consensus estimates for FY26 and FY27 have moved roughly 4% higher over the past two weeks, Stifel’s checks suggest that a Blackwell driven inflection to the upside is more likely an April quarter event than January and believes that “a diverse set of data points support the positive revisions.”Voicing a similar opinion, Truist raised the firm’s price target on Nvidia to $167 from $148 and maintained a Buy rating on the shares. The firm expects the company to deliver upside vs. consensus while also expressing confidence in 2025 owing to a very robust backlog. Truist believes Nvidia management commentary will focus on the next drivers of growth after LLMs – data processing, and physical AI – and raises its estimates based on higher growth expectations in the Datacenter end market.
BLACKWELL ISSUES: Ahead of Nvidia’s Q3 quarterly results, The Information has reported that NVDA’s Blackwell rack-scale systems are requiring some late design changes to overcome overheating issues; potentially resulting in some delays, Wells tells investors in a research note. While articles note that Nvidia has not notified any customers of delays, and Wells does expect the company to reinforce its prior comment that its Blackwell platform cycle will drive “several billions” in revenue in Q4, it does note that design changes and some delays have raised concern among some of the hyperscale customers. The firm further notes that it has not heard of any significant concerns coming out of the Taiwanese ODMs.Meanwhile, Semianalysis chief analyst Dylan Patel told that while cooling Nvidia’s Blackwell chips will continue to be a major concern, such design issues related to it have been resolved. “I think the overheating issues have been present for months and they have largely been addressed,” Patel told Insider, noting that rumors of overheating chips go back months.More By This Author:Invizyne Technologies Jumps After IPOWall Street’s Top 10 Stock Calls This Week – Saturday, Nov. 16What Wall Street Experts Are Saying About Disney Ahead Of Earnings
Here’s What Wall Street Experts Are Saying About Nvidia Ahead Of Earnings
