A look at Nvidia's earnings this week
This week, many investors will be watching Nvidia, which is still considered the center of AI infrastructure. The company's earnings report is scheduled for release on Wednesday after the US market closes, and is expected to provide important direction for the market, answering the question of whether Nvidia can beat expectations again - and on what terms.
Expectations and key numbers
Analysts have clearly raised their expectations for Nvidia.
● Revenue for Q3 is expected to be approximately USD 54.8 billion.
● Earnings per share (EPS) is estimated to be approximately USD 1.25 per share.
● The data center business is expected to continue to grow strongly, up to around 60%.
Additionally, analysts point out that capital expenditures (capex)s in AI infrastructure by large hyperscalers such as Microsoft, Amazon, and others could support Nvidia. The demand for AI computing power hasn’t shown signs of slowing down.
Why is Nvidia's report so important?
Nvidia is not “just” a technology giant. Due to general market sentiment and issues related to artificial intelligence, the company’s role has become central.
● The company is a major player in the AI hardware delivery, and its product lines such as the Blackwell architecture are raising expectations.
● Nvidia's results can serve as an indicator for the entire AI and semiconductor sectors.
● There are significant expectations associated with the company and this risk carries weight: if the company's report is weak or expectations are not met, it can quickly be reflected in general market sentiment and cause significant price movements.
Risks and uncertainties
Although the company's growth rate appears strong, it is also important to consider potential risk factors.
● Export restrictions to China are creating uncertainty for certain AI chip products and may impact future quarters.
● High expectations for results and company development may lead to disappointment if they are not met. The market may still demand positive surprises. Simply meeting expectations may not be enough.
● Also taking the broader market context into account, including interest rates, inflation and geopolitical factors can affect investors' risk appetite and, consequently, the pricing of technology stocks.
Outlook for investors and the market
The report’s results can have several effects:
● If Nvidia beats expectations and guidance is strong, this could support the entire AI and semiconductor sector. This could generate broad positive momentum and strengthen sentiment in both large- and mid-cap semiconductor companies.
● If expectations are not met or guidance is cautious, however, it could in turn trigger a broader negative reaction – not only in Nvidia stock, but also in other stocks and sectors tied to AI and semiconductors.
In addition to the numbers, investors should also follow management's comments on investments, the demand outlooks, and supply chain situation.
Technical analysis
Nvidia's stock price has been performing very well in recent years. Since the beginning of this year, it has risen by around 40%, and even more since the 2025 lows. The price reaction to the previous result was initially slightly negative, but the price soon continued to rise, reaching a new ATH (All Time High) readings of $212.19 in October. At the time of writing, the share price is around $190.
From a technical perspective, it can be highlighted that the price broke the 25-Day Exponential Moving Average (EMA25) (yellow) and 50-Day Simple Moving Average (SMA50) (blue) moving averages visible on the daily chart downwards in early November. The price has remained in the vicinity of these and is below the EMA25 moving average at the time of writing. If the decline continues, and the SMA50 moving average is also broken downwards, the technical picture will weaken, especially when viewing the shorter time frame. However, the price is above all the moving averages visible looking at the weekly chart and is still clearly above the 200-Day Simple Moving Average (SMA200) (red) moving average on the daily chart. On the daily chart, a trend line can be seen, which has acted as a clear support level in previous months. A downward break of this trend line would also weaken the technical picture. A slightly weakened technical picture could also create uncertainty among investors, unless significant changes occur in it before the published result.
NVDA (USD), one-year chart
NVDA (USD), five-year chart
Summary
Nvidia's earnings release this week is one of the most significant events of the earnings season. While expectations are strong, delivering a positive surprise can be a challenge, also considering the strong comparative periods.
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