By Daniel Howley
Publication Date: 2025-11-18 22:57:00
Nvidia (NVDA) will report its highly anticipated third quarter earnings after the bell on Wednesday, its first such announcement since the company’s market capitalization briefly eclipsed $5 trillion last month.
The earnings reveal comes as Wall Street grows increasingly anxious over the state of the AI trade, with investors and analysts flagging bubble concerns amid high valuations. Nvidia’s stock was down nearly 3% on Tuesday, and shares have lost some 12% since its latest all-time high.
Even as other tech behemoths have reported strong earnings, the chip giant is the most important bellwether for the AI trade. Any miss or beat on projections set to impact price action on a wide array of AI stocks. The report could also trigger a $320 billion swing in the chipmaker’s market value, according to data from analytics firm Option Research & Technology Services (ORATS). That would be the largest post-earnings move ever for Nvidia.
According to Deepwater Asset Management managing partner Gene Munster, a beat and raise scenario may not necessarily be a good thing for the broader AI trade.
“The cross currents … set up a Catch-22 for the AI complex, because stronger guidance can amplify worries about overspending, while a modest raise can be read as the first sign that growth is normalizing faster than expected,” he wrote in a note to investors.
The report comes after Peter Thiel’s hedge fund sold off its entire roughly $100 million stake in Nvidia. SoftBank…