Nvidia (NVDA) is poised to announce its third-quarter fiscal 2025 earnings on November 20, with analysts anticipating impressive year-over-year growth, Tip Ranks reports.
The AI powerhouse is expected to report earnings per share (EPS) of $0.75, marking an 88% increase compared to the same period last year, according to data from TipRanks. Revenue is projected to reach $33.09 billion, reflecting an 82.6% surge year-over-year.
This strong performance would add to Nvidia’s remarkable financial momentum. The company’s stock has surged 182% over the past year and is up 187% year-to-date, driven by its leadership in the artificial intelligence (AI) and data center sectors. Nvidia’s stellar growth has led it to consistently exceed analyst expectations, surpassing earnings estimates in eight out of the last nine quarters.
Ahead of the earnings report, market sentiment remains overwhelmingly positive, with many analysts maintaining Buy ratings on the stock and raising their price targets. Nvidia’s strong position in AI hardware and software, which positions it to capitalize on the booming demand for AI-driven solutions, is fueling the optimism. Analysts believe Nvidia is well-equipped to dominate the rapidly evolving AI landscape, presenting a compelling investment opportunity for long-term growth.
The company’s dominance in AI applications, combined with its robust presence in data centers, has cemented its reputation as a key player in the tech sector. Analysts are particularly bullish on Nvidia’s ability to leverage its advanced GPU technology to meet the surging demand for AI tools and services across various industries.
Despite the optimistic outlook, some analysts highlight potential risks. Bears point to challenges like excess inventory and increasing competition from in-house solutions developed by other tech firms. Additionally, Nvidia is under scrutiny by the US Department of Justice, which is investigating potential antitrust violations. This regulatory uncertainty could pose headwinds for the company, especially if the investigation leads to legal or operational challenges.
Nvidia is also facing short-term production hurdles, particularly related to its Blackwell supply chain, which is causing margin pressures and potential delays in meeting demand. However, analysts suggest these challenges are likely temporary and unlikely to derail the company’s long-term growth trajectory.
Looking ahead to the earnings release, options traders are bracing for potential volatility. According to TipRanks’ Options tool, the market is pricing in a 9.83% move in either direction following Nvidia’s earnings announcement. This expected move reflects investor anticipation of significant market reactions based on the results.
Despite Nvidia’s impressive run-up in stock price, Wall Street remains bullish on the company. Over the past three months, the stock has received 39 Buy recommendations and just three Hold ratings, reflecting strong investor confidence in its growth prospects. With an average price target of $163.26, analysts believe the stock has an additional 14.99% upside potential.
