Amid Growing AI Skepticism, All Eyes Are on Nvidia Earnings
Summary:Nvidia stock is at crossroads and so are multiple stocks in the tech sector as the AI hardware giant readies to release earnings report that could either confirm or put to rest market bubble talk. In...
Summary:
- Nvidia stock is at crossroads and so are multiple stocks in the tech sector as the AI hardware giant readies to release earnings report that could either confirm or put to rest market bubble talk.
In recent days, stocks have dipped under the weight of fears that the artificial intelligence (AI) boom might be inflating into a bubble. Ahead of Nvidia earnings release, there’s talk of too much investment in AI, and analysts are have rang the alarm bells. Alphabet’s Sundar Pichai even warned recently that no company is safe if the bubble bursts.
Now, with Nvidia (NASDAQ: NVDA), the undisputed leader in AI hardware set to announce its fiscal Q3 earnings today, the entire market is effectively holding its breath. With the Nasdaq Composite 2% this week, investors are ready for a big moment.
Nvidia isn’t just a chip company anymore. It’s driving the big spending on equipment that’s powering the AI revolution. Its powerful GPUs, like the H100 and the new Blackwell (B200) line are the core infrastructure upon which all major AI platforms run.
What to Expect from Nvidia Earnings Report
Nvidia earnings results arrive amid sky-high expectations. Consensus forecasts compiled by LSEG project revenue surging 56% year-over-year to $54.92 billion, driven by data center demand for its H100 and Blackwell GPUs. Earnings per share are eyed at $1.26, a 54% jump, reports Yahoo Finance. Nvidia CEO Jensen Huang has dismissed bubble talk, insisting AI adoption is in its early innings, much like the Internet in the 1990s.
Yet, Reuters notes that guidance for the next quarter will be scruitinised for signs of slowing hyperscaler spending from the likes of Amazon and Microsoft. Options traders via TipRanks imply a 7.69% post-earnings swing. That is far above the recent 4% average. That could potentially shift Nvidia’s market cap substantially in the coming days.
Implications of the earnings report
The market has priced in near-perfection for Nvidia. Aanalysts are looking for revenue significantly above the consensus estimate of approximately $54.8 billion and, more importantly, a Q4 guidance well over the $60 billion mark. A decisive beat of revenue earnings and guidance raise would likely reignite risk appetite. This would calm the “AI bubble” skeptics, validate the massive investment spending by hyperscalers and likely lead to a sharp rally in tech stocks across the board.
On the other hand, if the earnings are just okay, or if the sales forecast is lower than expected, it would suggest the AI boom is slowing down. The stock’s premium valuation means there’s not much room for mistakes. A disappointment could be the thing that bursts the AI bubble, causing a big drop not just for Nvidia stock price, but for the broader tech industry and potentially the wider stock market.
Nvidia Stock Forecast
Nvidia stock price hovers above the 100 and 200-day SMA at $179.52 and $151.85 respectively, but below the 20-day SMA of $193.08, signaling short-term caution yet long-term bullish bias. RSI at 42 indicates weak buying momentum, leaving room for a post-earnings pop if positives emerge.
See also
The pivot is at $180, just above the 100-day SMA. The with first support is at $172. 50, and a break below that level could extend losses to test $164.50. Primary resistance lies at $186.30, just above the previous session’s high. A break triggered by positive Nvidia earnings could extend gains to retest the psychological $200.
Nvidia stock price as of November 19, 2025 pre-market with key support and resistance levels. Created on TradingView
Why is Nvidia’s earnings report considered a critical test for the broader market?
Nvidia is the dominant supplier of AI infrastructure chips, and its results and future guidance are seen as a bellwether for the entire AI capital expenditure cycle and tech sector sentiment.
What is the main concern driving the recent pressure in the stock market?
The main concern is that the high valuations in the AI sector may indicate a market bubble. This has led to investor caution and profit taking.
What specific part of Nvidia earnings report are analysts focused on?
Analysts are most interested in the forecast for Q4, as it shows what future demand will be like whether the AI boom will last.
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