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Santa Clara, California-based NVIDIA Corporation (NVDA) is a key innovator of computer graphics and AI technology. The company provides graphics and compute and networking solutions. With a market cap of $3.5 trillion, NVDA develops a platform for scientific computing, AI, data science, autonomous vehicles, robotics, metaverse, and 3D internet applications, as well as focuses on PC graphics by serving clients worldwide. The chip giant is expected to announce its fiscal third-quarter earnings for 2025 after the market closes on Wednesday, Nov. 20.
Ahead of the event, analysts expect NVDA to report a profit of $0.69 per share on a diluted basis, up 81.6% from $0.38 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect NVDA to report EPS of $2.65, up 124.6% from $1.18 in fiscal 2024. Its EPS is expected to rise 33.2% year over year to $3.53 in fiscal 2026.
NVDA stock has considerably outperformed the S&P 500’s ($SPX) 41.4% gains over the past 52 weeks, with shares up 247% during this period. Similarly, it substantially outperformed the Technology Select Sector SPDR Fund’s (XLK) 42.9% gains over the same time frame.
NVDA exceled due to strong demand for Hopper and Blackwell chips, driven by AI growth. Coatue Management's significant investment signals confidence in NVDA's future potential. Moreover, the upcoming Blackwell launch promises enhanced computing capabilities and energy efficiency for generative AI.
On Aug. 28, NVDA shares closed down more than 1% after reporting its Q2 results. Its revenue was $30 billion, surpassing analyst estimates of $28.8 billion. The company’s adjusted EPS of $0.68 exceeded analyst estimates of $0.64. For Q3, NVDA expects revenue to be $32.5 billion.
Analysts’ consensus opinion on NVDA stock is bullish, with a “Strong Buy” rating overall. Out of 41 analysts covering the stock, 35 advise a “Strong Buy” rating, two suggest a “Moderate Buy” rating, and four give a “Hold.” NVDA’s average analyst price target is $151.36, indicating a potential upside of 7.7% from the current levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
