Nvidia (NVDA) Q3 Earnings Preview: Smart Buy or Overhyped Gamble?
Nvidia's earnings loom—will AI hype deliver or deflate?
The chipmaker's stock rides a rocket fueled by AI dreams, but whispers of 'overbought' grow louder. Analysts juggle valuation models like circus performers while retail traders YOLO their rent money.
Key factors to watch:
- Data center revenue: The golden goose or next quarters' rotisserie chicken?
- Guidance whispers: Will Huang's crystal ball show sunny skies or thunderclouds?
Remember kids: Earnings season turns Wall Street into a casino where the house always wins—just ask last quarter's options bagholders.
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What to Expect from Nvidia’s Q3 Earnings
Wall Street analysts expect Nvidia to report earnings of $1.25 per share for the third quarter of Fiscal 2026, up 54% from the year-ago quarter. Meanwhile, analysts project Q3 revenues of nearly $54.79 billion, according to the TipRanks Analyst Forecasts Page. This marks a year-over-year increase of over 57%.
China will remain a watch point during the earnings call. Nvidia cannot sell its top Blackwell chips into the region under current export rules, and demand for the adjusted versions built for China has been softer than expected.
The company is still working through orders, and investors will be watching for any update on how much revenue China can contribute going forward. In addition, they will closely watch for updated guidance on data center growth and supply outlook.
Top Analysts’ Views on Nvidia Ahead of Earnings
Ahead of the print, Top Oppenheimer analyst Rick Schafer expects Nvidia to post stronger-than-expected Q3 results. He raised his price target to $265 from $225 and kept an Outperform rating, saying demand for Nvidia’s AI chips “remains extremely strong.” The 5-star analyst believes Nvidia is well-positioned to beat both Q3 and Q4 expectations as cloud customers continue to lift their spending on AI hardware.
Similarly, top-rated analyst Christopher Rolland from Susquehanna raised his price target to $230 from $210 and kept a Buy rating. He said demand in Nvidia’s data center business remains strong, led by heavy spending from major cloud players. Rolland added that Nvidia’s Blackwell Ultra chips could have roughly 14% higher pricing, and the shift toward higher-priced products like the B300 and GB300 should support solid revenue growth in Q3 and Q4.
Is NVDA a Good Stock to Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on NVDA stock based on 37 Buys, one Hold, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average NVDA price target of $240.00 per share implies 28.44% upside potential.
