Nvidia, a leading player in the AI chip market, is preparing to release its third-quarter earnings, which could address concerns about the valuation trends among AI companies. Analysts express optimism that Nvidia will likely surpass Wall Street’s expectations. However, there is a keen interest in the insights provided by CEO Jensen Huang regarding future industry demand for AI chips.
Analysts have noted Nvidia’s significant market position in AI-focused chips and anticipate its revenue, margins, and cash flows will align closely with forecasts. There is particular interest in Huang’s commentary on the direction of Nvidia’s markets, including both AI and potential new ventures.
In recent developments, Nvidia’s shares experienced a decline of 7.9% in November, attributed to major investors divesting from the firm. Notably, Peter Thiel’s hedge fund, Thiel Macro, sold its entire stake in Nvidia, valued at approximately $100 million. Additionally, Softbank liquidated its $5.8 billion holdings, raising concerns about a possible AI market bubble.
Some experts question the sustainability of Nvidia’s growth. Forrester’s analyst Alvin Nguyen highlighted that while current AI demand is strong, potential market corrections could impede future growth in Nvidia’s share value.
Analysts predict Nvidia will report earnings of $1.26 per share and $54.9 billion in total revenues, with datacenter sales projected at $49 billion, reflecting a 56% year-over-year increase. Moreover, expectations for the fourth quarter include anticipated revenues of $62.2 billion. Earnings below these projections may result in a muted market response. In the previous quarter, Nvidia exceeded most expectations, except for datacenter sales, which led to a minor drop in after-hours trading.
Source: https://www.theguardian.com/technology/2025/nov/19/nvidia-earning-report