Nvidia (NASDAQ:NVDA) Earnings Preview: Analysts Bullish Ahead of Q3 Results

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Nvidia (NASDAQ:NVDA) is scheduled to announce its fiscal third-quarter results after the market closes on Tuesday, November 21. The chipmaker has been the standout performer among S&P 500 companies, posting a remarkable yearly gain of over 222%, surpassing the S&P 500 Index (SPX) rally of 14.3%. Interestingly, analysts maintain a bullish outlook for NVDA’s Q3 performance, anticipating continued upside potential in its stock.

Overall, the Street expects Nvidia’s Q3 adjusted earnings to jump to $3.37 from $0.58 in the prior-year quarter. Also, analysts are anticipating Nvidia’s revenue to rise 173% year-over-year to $16.2 billion.

Here’s What Analysts Are Saying

Ahead of Nvidia’s fiscal third-quarter results release, 10 Top-rated analysts assigned a Buy rating to NVDA stock. Before we dig deeper, investors should note that TipRanks identifies the Top Wall Street analysts per sector, per timeframe, and against different benchmarks. The ranking reflects an analyst’s ability to deliver higher returns through recommendations.

Susquehanna analyst Christopher Rolland expects NVDA to report a “beat and raise” quarter. The expectations for the company’s strong performance in Q3 are based on an improved supply chain and an impressive backlog. Further, the analyst expects Nvidia to benefit from its efforts to increase capacity at existing suppliers. It is worth mentioning that Rolland raised his price target to $625 from $600.

Another analyst, Toshiyari Hari from Goldman Sachs, expects the company to report strong Q3 results and provide encouraging forward guidance. He finds the stock’s risk/reward profile to be attractive at the current levels. Regarding Q3 results, the analyst believes Nvidia’s Data Center and Gaming segments have performed well. Hari expects Q3 Data Center revenue of $12.4 billion to rise 20% sequentially, while Gaming revenue is projected to increase by 14% to $2.82 billion.

What is NVDA’s Price Target?

The analysts’ average price target of $648.01 implies 31.5% upside potential from the current levels. Also, Wall Street is highly bullish on Nvidia, with a Strong Buy consensus rating based on 37 Buys and one Hold.

Insights from Options Trading Activity

TipRanks now presents options activity to help investors plan their trades ahead of earnings releases. Options traders are pricing in a +/- 7.82% move on Nvidia’s earnings. NVDA shares have averaged a 5.86% upward move in the last eight quarters. In particular, the stock gained a negligible 0.1% in reaction to fiscal second-quarter results.

The anticipated move is determined by computing the at-the-money straddle of the options closest to the expiration after the earnings announcement.

Learn more about TipRanks’ Options tool here.

Ending Note

NVDA’s dominant position in the AI space allows it to benefit from developments in generative AI. Furthermore, efforts to continue introducing new products and easing supply chain issues, along with positive momentum in the Data Center and Gaming businesses, remain key supporting factors for Nvidia’s performance.