Nvidia Shares To Climb Over $140 Levels, Says Technical Analyst Ahead Of Q3 Results

Nvidia Corporation (NVDA) is set to report its third-quarter fiscal 2025 earnings after the market closes on Wednesday, November 21, 2024. Analysts and investors alike are eagerly anticipating the results, with expectations of strong revenue growth driven by demand for artificial intelligence (AI) infrastructure and record data center sales. Technical analysts predict that Nvidia's shares will climb over $140 levels, provided the company beats street expectations.

Nvidia's data center revenue has been a significant driver of its growth, with analysts expecting it to reach a fresh high of $29.53 billion in the third quarter, up from $26.3 billion in the second quarter. This represents a year-over-year growth of 11.7%. Morgan Stanley analysts have raised their price target for Nvidia stock to $160, citing the strength of its data center growth. They expect NVDA's Data Center business to drive much of the growth over the next 5 years, as enthusiasm for generative AI has created a strong environment for AI/machine learning hardware solutions.

Investors will also be watching for updates on shipments of Nvidia's Blackwell AI chip, which CEO Jensen Huang has called "a complete game changer for the industry." However, supply constraints could limit the upside of Nvidia's near-term outlook, with Morgan Stanley analysts warning that "the bigger upward revisions happen later in the year." Nvidia has said it expects to ship several billion dollars worth of Blackwell revenue during the January quarter as production ramps up.

Nvidia's guidance for the fourth quarter will also be closely scrutinized by investors. Analysts expect the company to earn 82 cents per share on sales of $37.09 billion, representing year-over-year growth of 61% in earnings and 72% in revenue. If Nvidia meets or exceeds these expectations, it will indicate strong demand for its AI products, particularly the Blackwell AI chip, boosting investor confidence and potentially driving the stock above $140 levels. However, any shortfall in guidance could lead to a pullback in the stock price, as investors may question the sustainability of Nvidia's growth trajectory.

In conclusion, Nvidia's third-quarter fiscal 2025 earnings report is expected to be a pivotal moment for the company and its investors. With strong data center revenue growth and the potential for record-breaking Blackwell AI chip shipments, Nvidia has the opportunity to continue its upward trend. However, supply constraints and guidance for the fourth quarter will be critical factors in determining the company's future stock performance. As a technical analyst suggests, Nvidia will have to beat street expectations for the trend to continue, and investors should closely monitor the company's earnings report to make informed decisions about their portfolios.