Nvidia Stock: Set for Liftoff After Nov. 20 Earnings

Nvidia(NVDA -3.26%) has been on a tear this year, with its stock price surging 186% through early November. The company's artificial intelligence (AI) prowess and dominant position in the graphics processing unit (GPU) market have fueled investor enthusiasm. As the tech giant prepares to report its fiscal 2025 third-quarter earnings on Nov. 20, analysts and investors alike are eager to see if the stock can maintain its momentum. Here's why Nvidia stock could soar following the earnings report.

Nvidia's earnings reports have historically been catalysts for stock price movements. In the past two years, the stock has gained significantly after earnings releases, driven by strong financial performance and positive guidance. As the company approaches its Nov. 20 earnings call, investors are anticipating another impressive quarter.

Wall Street analysts expect Nvidia to report $32.9 billion in revenue for the third quarter, a figure that could be surpassed given the company's history of beating estimates. The company's data center revenue, which accounts for a significant portion of its total revenue, is expected to grow by 154% year-over-year. This growth is driven by strong demand for Nvidia's GPUs, which are widely used in AI applications.

Nvidia's upcoming earnings report will also provide insights into the progress of its new Blackwell architecture, which promises a significant improvement in AI inference speed and cost efficiency. The company has already begun shipping GB200 GPUs, and Microsoft is offering the new GPU to developers. With estimates suggesting up to 200,000 individual GB200 GPUs shipped in the final three months of 2024, the upcoming report could include billions in GB200 sales.

Investors should also pay close attention to Nvidia's guidance for future quarters. If the company exceeds Wall Street's revenue estimate of $32.9 billion, it could signal strong demand for its new Blackwell architecture and bolster investor confidence. This could lead to a surge in Nvidia's stock price in the weeks and months ahead.

However, investors should remain cautious and consider potential risks and challenges that could impact Nvidia's stock performance. Supply chain disruptions, increased competition in the AI chip market, and geopolitical tensions could all pose threats to the company's growth prospects.

In conclusion, Nvidia's upcoming earnings report on Nov. 20 is poised to propel the stock higher, with the launch of the Blackwell architecture being a key catalyst. If Nvidia meets or exceeds Wall Street's revenue estimate of $32.9 billion, the stock is likely to continue its upward trajectory in the weeks and months ahead. However, investors should remain vigilant and monitor the company's guidance and any potential risks that may arise.