TLDR:
- Nvidia stock near all-time high, with upcoming tech giants’ earnings (Microsoft, Alphabet, Amazon, Meta) potentially impacting its trajectory
- Tech giants expected to report record $56 billion in combined Q3 capital expenditures
- Nvidia has beaten earnings estimates in all but two quarters over the past five years
- Company’s Q3 earnings report scheduled for November 20, with projected revenue of $32.9 billion
- New Blackwell chips experiencing strong demand according to CEO Jensen Huang
Nvidia Corporation’s stock performance faces a crucial week ahead as its major customers prepare to release their earnings reports, despite the chipmaker’s own financial results not being due until November 20. The company’s shares, which have nearly tripled in value this year, are trading close to their all-time high.
Microsoft, Alphabet, Amazon, and Meta Platforms are set to announce their earnings in the coming days. These tech giants, which accounted for over 40% of Nvidia’s sales in the second quarter, will provide key insights into their capital spending plans that could impact Nvidia’s future performance.
Wall Street analysts expect these four companies to report a combined record of $56 billion in capital expenditures for the third quarter. This spending is largely directed toward AI-related equipment, with Nvidia being a primary beneficiary as a leading supplier of specialized chips for artificial intelligence computing.
The company’s stock has been a major driver of the S&P 500’s performance this year, contributing approximately one-quarter of the index’s 22% advance. Nvidia’s market capitalization has grown by more than $2 trillion in 2024, reaching approximately $3.5 trillion, placing it just behind Apple Inc. as the world’s most valuable company.
Recent earnings reports from industry players like ASML Holding and Taiwan Semiconductor Manufacturing Company have indicated continued strength in AI-related spending, supporting Nvidia’s positive momentum. CEO Jensen Huang has also provided reassurance about the production and demand for the company’s new Blackwell chips.
Financial projections show Nvidia’s revenue is expected to exceed $125.6 billion this year, more than double the previous year’s figure. Looking ahead to fiscal 2026, analysts estimate sales will increase by 44% to $181 billion.
The company has demonstrated consistent performance in exceeding market expectations, beating Wall Street’s earnings estimates in all but two quarters over the past five years. This track record has been attributed to rapidly growing demand for its graphics processing units (GPUs) outpacing analysts’ forecasts.
For the upcoming third quarter, analysts project revenue of $32.9 billion and adjusted earnings of $0.74 per share, representing sequential growth of approximately 9.7% and 8.8% respectively. However, Nvidia’s own guidance suggests Q3 revenue of $32.5 billion, slightly below analyst expectations.
The company’s Chief Financial Officer, Colette Kress, has indicated that demand for Hopper GPUs will continue to grow through the second half of the year, with adjusted gross margins expected to remain stable from the previous quarter.
The introduction of Nvidia’s new Blackwell chips has generated substantial interest, with CEO Huang describing customer demand as “insane.” This new GPU platform could play a crucial role in the company’s future growth prospects.
However, investors are also monitoring potential concerns about the return on investment from AI spending among major tech companies, as the billions invested have yet to generate proportional revenue gains.
The stock currently trades at $141.54, showing a 0.80% increase, with pre-market trading indicating further gains of 1.05%. The share price has moved between $39.23 and $144.42 over the past 52 weeks.
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