Nvidia's stock has a strong setup ahead of next week's earnings, this analyst says

By Britney Nguyen

Nvidia recently disclosed visibility into more than $500 billion in revenue through the end of next year. Plus, its recent lagging stock performance suggests 'a lower bar for execution.'

Nvidia is set to report its fiscal third-quarter results next week.

Nvidia may have big beat-and-raise potential when the company reports results next week, thanks to the continued ramp-up of its Blackwell rack-scale system and recent commentary around visibility into more than $500 billion in revenue through the end of next year.

That's the view of Susquehanna's Christopher Rolland, who wrote positively about Nvidia (NVDA) ahead of Wednesday's earnings report. Plans for growing capital expenditures by hyperscalers should support artificial-intelligence demand, he said, as the five major hyperscalers are expected to raise their spending by 69% this year.

As of the publication of Rolland's report, Nvidia's stock had climbed about 8% since its last earnings report, underperforming the PHLX Semiconductor Index SOX, which was up 20%. That lagging performance "likely indicates a lower bar for execution," he said.

Rolland is also encouraged by recent results from Foxconn Technology Group, which topped estimates earlier this week and said that it met its target for AI-server revenue for the year in only three quarters. That's a "positive" sign, according to Rolland.

Nvidia's Blackwell Ultra graphics processing units have a higher average sales price than the B200s, Rolland noted. Therefore, he said, both Blackwell Ultra and the Blackwell rack-scale system will be crucial for Nvidia to drive double-digit sequential revenue boosts, which is what Susquehanna and the consensus are modeling for the third and fourth quarters.

Additionally, Nvidia CEO Jensen Huang said at the company's GPU Technology Conference in Washington, D.C., last month that the company has visibility into more than $500 billion in revenue through the end of 2026 from its Blackwell and Rubin platforms, a portion of which has already shipped. Rolland said that revenue likely includes both compute and networking, but it "nonetheless implies upside" to cumulative consensus estimates for fiscal 2026 and 2027.

See more: Nvidia just became the first $5 trillion company. Here's how big that really is.

The Susquehanna team expects more growth in Nvidia's data-center networking business due to the ramp-up of networking for the Blackwell rack.

With an upbeat view going into Nvidia's earnings report, Rolland said he and his team wonder if Huang will address growing concerns over a "power wall" that could inhibit the global data-center buildout and impact revenue for its AI chips. Companies are scrambling to secure enough power to meet the growing needs of data centers, and that could limit their ability to scale up.

Rolland's team also sees upside for Nvidia's gaming chips and professional-visualization segment but said trends in the automotive business look "more mixed."

The Susquehanna analysts kept a positive rating on Nvidia's stock and raised their price target to $230 from $210, saying they "still view Nvidia as having one of the largest opportunity sets ahead."

-Britney Nguyen

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11-13-25 1112ET