Nvidia Q3 Earnings Preview
AI powerhouse Nvidia is gearing up to unveil its third-quarter earnings on Wednesday, November 20th. With market expectations riding high and the stock already enjoying a stellar year, all eyes are on whether Nvidia can maintain its momentum. Let’s dive into what’s driving the anticipation for this key earnings release.
Can Nvidia Beat the Street?
Expectations for Nvidia’s Q3 results are sky-high, with Wall Street forecasting earnings per share (EPS) of $0.75, representing an 88% year-over-year increase. Revenue estimates are equally robust at $33.09 billion, an 82.6% jump compared to the same period last year.
The data centre segment, Nvidia’s largest revenue driver, is expected to continue benefiting from the global surge in AI adoption, with particular strength in demand for GPUs used in AI training. The market will also watching closely for updates on Nvidia's Blackwell GPUs, which are anticipated to contribute significantly to future growth, despite current supply chain constraints causing some margin pressures.
Beyond data centres, Nvidia’s other business segments, such as professional visualisation and gaming, are projected to post moderate growth. While gaming revenue has shown signs of recovery over recent quarters, money managers will be keen to understand whether this segment can return to pre-pandemic levels, given increasing competition and inventory challenges.
Guidance for Q4 will also be a critical factor. The market is looking for clarity on whether Nvidia can sustain its impressive growth trajectory into the new fiscal year, particularly as macroeconomic headwinds and regulatory scrutiny pose potential risks to its operations.
Key Levels: Technical Analysis
Nvidia’s long-term uptrend is undeniable, with shares tripling in value this year. The stock has consistently held above its 200-day moving average and established a supportive ascending trendline fan. Additionally, the volume-weighted average price (VWAP) anchored to the start of the year has proven to be a key dynamic support zone during pullbacks, such as the one in August.
That said, recent price action suggests a need for caution among bulls. Nvidia recently rallied to retest its June highs, but progress above this level has been limited. Currently, the stock is trading below the June highs, a sign of potential resistance. This failure, coupled with negative RSI divergence, indicates waning momentum in the short term.
Whether Wednesday’s Q3 earnings will inject fresh life into Nvidia’s uptrend or mark a pause in its meteoric rise remains to be seen.
NVDA Daily Candle Chart
Past performance is not a reliable indicator of future results
Key Levels to Watch
• Resistance: June highs and last week’s trend highs.
• Short-term Support: The trendline fan.
• Major Support: VWAP anchored to the start of the year and the 200-day moving average.
Disclaimer: This is for information and learning purposes only. The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance. Social media channels are not relevant for UK residents.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 82.67% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
Can Nvidia Beat the Street?
Expectations for Nvidia’s Q3 results are sky-high, with Wall Street forecasting earnings per share (EPS) of $0.75, representing an 88% year-over-year increase. Revenue estimates are equally robust at $33.09 billion, an 82.6% jump compared to the same period last year.
The data centre segment, Nvidia’s largest revenue driver, is expected to continue benefiting from the global surge in AI adoption, with particular strength in demand for GPUs used in AI training. The market will also watching closely for updates on Nvidia's Blackwell GPUs, which are anticipated to contribute significantly to future growth, despite current supply chain constraints causing some margin pressures.
Beyond data centres, Nvidia’s other business segments, such as professional visualisation and gaming, are projected to post moderate growth. While gaming revenue has shown signs of recovery over recent quarters, money managers will be keen to understand whether this segment can return to pre-pandemic levels, given increasing competition and inventory challenges.
Guidance for Q4 will also be a critical factor. The market is looking for clarity on whether Nvidia can sustain its impressive growth trajectory into the new fiscal year, particularly as macroeconomic headwinds and regulatory scrutiny pose potential risks to its operations.
Key Levels: Technical Analysis
Nvidia’s long-term uptrend is undeniable, with shares tripling in value this year. The stock has consistently held above its 200-day moving average and established a supportive ascending trendline fan. Additionally, the volume-weighted average price (VWAP) anchored to the start of the year has proven to be a key dynamic support zone during pullbacks, such as the one in August.
That said, recent price action suggests a need for caution among bulls. Nvidia recently rallied to retest its June highs, but progress above this level has been limited. Currently, the stock is trading below the June highs, a sign of potential resistance. This failure, coupled with negative RSI divergence, indicates waning momentum in the short term.
Whether Wednesday’s Q3 earnings will inject fresh life into Nvidia’s uptrend or mark a pause in its meteoric rise remains to be seen.
NVDA Daily Candle Chart
Past performance is not a reliable indicator of future results
Key Levels to Watch
• Resistance: June highs and last week’s trend highs.
• Short-term Support: The trendline fan.
• Major Support: VWAP anchored to the start of the year and the 200-day moving average.
Disclaimer: This is for information and learning purposes only. The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance. Social media channels are not relevant for UK residents.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 82.67% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
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