Nvidia Earnings Preview: Can the AI Juggernaut Keep the Rally Alive?

• Nvidia is scheduled to release its highly anticipated fiscal Q3 earnings report on Wednesday evening.
• The AI bellwether’s results will serve as a critical test for both the tech sector and the broader market.
• A beat-and-raise quarter could reignite risk appetite and quiet skeptics who fear an AI bubble, while a miss or cautious guidance could trigger a sharp correction.
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When the closing bell rings on Wednesday, the entire financial world will hold its breath for a single event: the release of Nvidia’s (NASDAQ:NVDA) quarterly earnings report. This is no longer just a financial update for one company; it has evolved into the most consequential event on the earnings calendar and the primary catalyst for the stock market’s direction.

With AI stocks tumbling in November and tech valuations under scrutiny, today’s guidance will likely dictate sector sentiment for weeks.

Source: Investing.com

The expectations are so astronomically high that the fundamental question is not if Nvidia will beat Wall Street’s estimates, but by how many billions, and whether its forward guidance can possibly satisfy a market that has priced in perfection.

Revenue and Earnings Expectations

Analysts enter this earnings report with sky-high but achievable expectations, building on Nvidia’s streak of blowout quarters thanks to insatiable demand for the company’s H100 and Blackwell GPUs.

Source: InvestingPro

• Earnings per share (EPS): Thanks to the elevated profit margins (72%-73%) on its top-tier AI chips, adjusted EPS is forecast to increase by nearly 55% compared to the year-ago period to $1.25.
• Revenue: Wall Street’s consensus estimate for the quarter is hovering around a jaw-dropping $54.8 billion, marking a robust 56.1% year-over-year increase.
• Data Center Revenue: This is the segment that truly matters. It is expected to be the primary driver, with sales projected to surge by 52% y-o-y to $48.6 billion as AI chip sales continue to dominate.

Beyond the Beat: Guidance is Everything

For Nvidia, a simple beat on these already lofty estimates is the bare minimum expectation and is largely priced into the stock. The market’s reaction will hinge on two critical factors: the magnitude of the beat and, most importantly, the company’s revenue forecast for the upcoming quarter, where Wall Street anticipates $61.3 billion in revenue.

Nvidia must guide significantly above this figure to signal that the unprecedented growth momentum is not decelerating. Any guidance that is merely in-line with expectations would be a major disappointment and could be interpreted as the first sign of "peak AI spending."

Investors will also be closely listening to CEO Jensen Huang’s commentary on key issues, including updates on Blackwell supply chain progress, China restrictions, and whether order backlogs continue growing amid unprecedented hyperscaler spending on AI infrastructure.

What It Means for the AI Trade and the Broader Market

Options markets are pricing in a massive +/-7% implied post-earnings move in Nvidia stock, equivalent to a $320 billion swing in Nvidia’s $4.4 trillion market cap—the largest ever for a single company report.

Source: Investing.com

A beat on numbers, coupled with upbeat Q4 guidance and Blackwell updates, could spark a relief rally, reigniting the "Magnificent Seven" and lifting AI-adjacent plays like AMD, Broadcom, TSMC, Super Micro, and even non-chip names like Palantir.

Conversely, red flags are mounting: investor jitters around AI overinvestment, potential capex moderation from Big Tech, and valuation stretches could amplify downside. A miss or cautious guide might validate "bubble anxiety," triggering a sector-wide rotation out of AI hype into value plays, pressuring the Nasdaq and echoing the 2022 tech correction.

Bottom Line

Nvidia’s results could either validate AI as a multi-year secular boom or expose early cracks in the foundation. Traders: Position for volatility—long calls if you’re bullish on endless AI scaling, or hedges if overbuilding fears keep you up at night.

As CEO Jensen Huang put it: “A new industrial revolution has started. The AI race is on.” Whether Nvidia keeps its lead—or trips on its own high expectations—will be clear by today’s close.

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Disclosure: This is not financial advice. Always conduct your own research.

At the time of writing, I am long on the S&P 500, and the Nasdaq 100 via the SPDR® S&P 500 ETF, and the Invesco QQQ Trust ETF. I am also long on the Technology Select Sector SPDR ETF. I regularly rebalance my portfolio of individual stocks and ETFs based on ongoing risk assessment of both the macroeconomic environment and companies’ financials.

The views discussed in this article are solely the opinion of the author and should not be taken as investment advice.

Follow Jesse Cohen on X/Twitter @JesseCohenInv for more stock market analysis and insight.