Nvidia to Announce Strong Performance and Guidance, Analysts Say

Investing.com - Nvidia is expected to announce another quarter of strong growth and optimistic guidance this week, analysts say. The main drivers are increased demand for AI infrastructure, rising shipments of next-generation chips, and continued growth in data center spending.

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Stifel analyst Ruben Roy told investors in a preview report that his expectations for Q4 are largely unchanged from three months ago, noting that the company is still dealing with “a well-known story of demand acceleration, while facing long-term concerns about the sustainability of AI infrastructure spending.”

He added that Stifel remains bullish, believing Nvidia “is still in the early stages of what we expect to be a long-term investment cycle in AI infrastructure.”

Roy said that conversations with management at CES and the increased outlook for capital expenditures by large cloud service providers in 2026 suggest that estimates “may be revised upward after the Q4 report.”

Meanwhile, John Vinh of KeyBanc predicts Q4 revenue of $69 billion, with guidance for Q1 at $74 billion to $75 billion, citing the positive impact of increased shipments of Blackwell B300/GB300 chips, which have higher average selling prices.

He estimates shipments of H200 chips to China will increase by $3 billion to $3.5 billion this quarter, with another $2 billion to $3 billion increase in the April quarter. Vinh also expects data center revenue to grow 24% quarter-over-quarter, with computing revenue rising 27%, but warns that GDDR memory shortages could pressure the gaming business.

Trade Nation senior market analyst David Morrison told Investing.com that Nvidia’s stock has been fluctuating between $170 and $195 for months, as investors weigh questions about AI investment returns and competitive threats.

However, he acknowledged that Wednesday’s earnings update could serve as a catalyst. “There’s a chance for a breakout,” he said, noting that the market will focus on data center revenue, cloud spending, and profit margins.

“The initial headlines will revolve around revenue and EPS, and how these figures compare to expectations,” he added. “Additionally, Nvidia often surprises investors with bullish forward guidance. If there’s good news here, it should support the stock.”

Morrison stated, “Data center revenue, chip demand, and large-scale cloud spending are all key factors,” and that competition and profit margins will also be closely watched.

He summarized, “For the world’s largest company by market cap, many factors are at play. There was a time when Nvidia’s stock seemed destined only to go up. That certainty has diminished. But regardless, Nvidia’s earnings will have a significant impact on the broader market.”

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