The global investment community is holding its breath as Nvidia, the world's most valuable company, prepares to announce its quarterly earnings. This report is widely seen as a make-or-break moment for Wall Street, arriving at a time when concerns over the sustainability of the artificial intelligence (AI) stock boom are at a peak.
Mounting Pressure and High Stakes
The anticipation for Nvidia's results comes amidst a backdrop of significant anxiety. Fears of an AI bubble have been amplified by the actions of several prominent investors. Tech billionaire Peter Thiel's hedge fund divested its entire stake in Nvidia in the third quarter. Similarly, SoftBank CEO Masayoshi Son sold his company's massive holding, a move valued at $5.8 billion, although he reportedly reinvested the proceeds into a large bet on OpenAI.
These high-profile exits have contributed to a market downturn for the chipmaker. After a staggering 1,200% surge over the past three years and a 31% rally in 2025 so far, Nvidia stock has fallen by 10% in November alone. This sell-off has raised alarms about a potential broader correction in US stocks.
What to Expect from the Earnings Report?
Despite the bubble fears, the underlying demand for Nvidia's advanced chips appears robust. Major technology giants continue to rely heavily on the company as they ramp up their AI spending. In a telling statement last month, Nvidia CEO Jensen Huang revealed that the company has $500 billion in bookings for its chips through 2026.
According to Ross Maxwell, Global Strategy Lead at VT Markets, revenue and earnings per share (EPS) estimates remain strong. However, he cautions that the phase of easiest growth may be over. "Investors would be looking to see whether Nvidia can sustain high margins, maintain strong AI-capex demand, and avoid any export or China-related headwinds," Maxwell added.
Data compiled by LSEG and cited in a Reuters report projects that Nvidia will report a more than 56% jump in its fiscal August-October quarter revenue to $54.92 billion. While this growth is impressive, Maxwell notes it will be relatively modest compared to the company's recent explosive earnings reports.
Key Challenges and Trading Strategy
One of the most significant challenges for Nvidia remains the US export restrictions on shipping its most advanced chips to China. This creates a major overhang for future growth in a critical market. Despite speculation about a possible deal for a scaled-down version, Reuters reported that Huang has stated there are "no active discussions" on selling the Blackwell architecture there.
For investors wondering how to trade this high-stakes event, analysts suggest a cautious approach. "Whilst a beat could trigger some upside, the market will be much more sensitive to a miss, or even softer guidance, which presents more downside risk for a potential pullback," explained Maxwell.
His advice is to consider booking partial profits ahead of the announcement and reassessing after the numbers and management commentary are released. "If the long-term view is still bullish, use any post-earnings dip as a potential entry rather than buying just ahead of the earnings event," he recommended, highlighting a strategy to manage risk while staying positioned for long-term gains.
