By Samuel O’Brient
Publication Date: 2025-11-18 18:33:00
Nvidia will be the last of the Magnificent Seven companies to report earnings for the third quarter, delivering results after the bell on Wednesday. To say the stakes are high would be an understatement.
Investors are highly anxious heading into the report as the broader AI trade has come under pressure in the last month. The chip titan’s stock is still up 37% year-to-date, but it has fallen by about 5% in the last five days.
Its decline has led the broader tech sector lower, and investors are increasingly questioning whether the premium valuations commanded by top AI names are justified.
The implications of Nvidia’s coming earnings report are significant, not just for Nvidia but for many of its tech peers. Valuations, concerns about returns on AI capex, and the overall demand picture for expensive GPUs are top of mind for investors. Meanwhile, SoftBank and Thiel Macro, the hedge fund of Peter Thiel, have sold off their entire Nvidia stakes recently, while “The Big Short” investor Michal Burry has revealed he’s betting against it.
Wall Street analysts, however, seem more bullish than their buyside peers. The mood heading into the report is bullish, and banks expect Nvidia to continue dominating the AI hardware trade in the coming quarters.
Wall Street estimates that Nvidia will report about $55 billion in revenue and earnings per share of $1.25 for the third quarter. Revenue in its key data center unit is expected to be about $49…
