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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.
Bullish analysts are optimistic about Nvidia’s growth prospects, particularly in AI hardware and software. They argue that the company is uniquely positioned to capitalize on the rapidly evolving AI landscape. Nvidia’s GPUs remain the gold standard for AI training and inference, securing its dominance in the industry.
Over the past week, most analysts have reiterated Buy ratings for the stock, with many raising their price targets. This reflects continued confidence in Nvidia’s ability to sustain its growth amid strong demand for AI-driven solutions and data center infrastructure.
However, Nvidia faces its share of challenges. Bears highlight risks such as excess inventory, increasing competition from in-house solutions developed by competitors, and regulatory scrutiny. Notably, the U.S. Department of Justice is investigating Nvidia for potential antitrust violations, which could create long-term uncertainty.
Additionally, supply chain constraints, particularly related to Nvidia’s Blackwell supply chain, have caused short-term margin pressures, which may impact production efficiency.
The only other derivative with high volume is call options where traders will also expect large price shifts after the earnings release. As estimated by TipRanks’ Options site, the expected price movement for NVDA is approximately 9.83% up or down after the company’s next earnings report. This is so because the market expects that Nvidia’s updates can significantly shift the stock in either direction.
Although they may not be completely problem-free, Wall Street trends are far more positive toward Nvidia. Since the start of the year up to the last three months, the stock has been assigned 39 buy recommendations and 3 holds by analysts on TipRanks. The average price target set by Nvidia stands at $163.26 translating to merely an upside potential of 14.99% in its current price levels
Given Nvidia’s strong earnings history—surpassing estimates in 8 of the last 9 quarters—the upcoming report is expected to reinforce the company’s leadership in the semiconductor and AI markets.
Analysts have estimated an 88% increase in its earnings while the company continues to enjoy high demand for most of its products. Until now, there have been challenges such as increase in regulatory scrutiny and supply problems but nevertheless, the future is very promising and thus the company is the preferred choice for those waiting for the AI parade.
