Nvidia Q3 Earnings Preview: Analysts Expect 'Beat-N-Raise On Continued Data Center Strength'

Nvidia Corporation NVDA analysts expect the technology giant to report third-quarter revenue of $33.12 billion on Wednesday, Nov. 20 after market close.

That’s up from $18.12 billion in last year's third quarter, according to data from Benzinga Pro.

The company has beaten analyst estimates for revenue in eight straight quarters and nine of the last 10 quarters overall.

Analysts expect third-quarter earnings per share of 75 cents. That’s up from 40 cents per share in last year's third quarter. The company beat analyst estimates for earnings per share in seven straight quarters and eight of the last 10 quarters.

Guidance from the company calls for third-quarter revenue to be $32.5 billion plus or minus 2%.

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Here's a look at what several Nvidia analysts are saying ahead of Wednesday's financial results:

• Truist analyst William Stein maintained a Buy rating and raised the price target from $148 to $167.
• KeyBanc analyst John Vinh maintained an Overweight rating with a $180 price target.
• Rosenblatt analyst Hans Mosesmann maintained a Buy rating with a $200 price target.
• Morgan Stanley analyst Joseph Moore maintained an Overweight rating and raised the price target from $150 to $160.

Truist: Data supports upside to Nvidia earnings with a significant backlog, Stein said in a new investor note.

Investors should buy Nvidia stock into earnings with the expectation that the company will beat third-quarter estimates and provide upside to fourth-quarter guidance, Stein says.

"We raise our estimates based on higher growth expectations in the Datacenter end market," he added.

The company is likely already working with suppliers, partners and customers to fix overheating issues.

"While we expect to hear Blackwell called out as a revenue generator in both CQ3 and ramping in CQ4, we believe any slippage in Blackwell will be replaced with Hopper, offering downside protection on revenue,” Stein said.

Two key items to watch in Nvidia's earnings call are physical AI like robotics and data processing, Stein added.

KeyBanc: Supply constraints could limit the near-term upside for Nvidia stock, Vinh said in a new investor note.

"We expect NVDA to report strong F3Q results, which will solidly beat, driven by strong demand for Hopper, and guide F4Q modestly above consensus expectations," Vinh said.

The analyst lowers fourth-quarter estimates due to supply constraints and several other items.

"While the lack of more meaningful upside could pressure NVDA NT (near term), we still see favorable risk/reward LT (long term) driven by outsized gen AI growth."

Hopper orders are getting pushed out according to supply chain checks, Vinh said. The analyst said pressure in China to use domestica AI solutions could also contribute to Hopper orders getting pushed out.

Rosenblatt: The technology giant could provide upside to third-quarter estimates and fourth-quarter guidance, Mosesmann said in a new investor note.

"Expecting a beat-n-raise on continued data center strength," Mosesmann said.

Hopper’s continued strength could show up in the quarterly results as the company transitions to the Blackwell ramp.

"The setup into 2025 is positive with a Blackwell ramp set to eclipse Hopper and resilient to unit share losses to AMD and ASIC accelerator players Broadcom and Marvell."

Mosesmann said Nvidia will likely report strong growth for the Data Center segment. Strength could also show through in the company's networking products, Mosesmann added.

Morgan Stanley: Moore raises Nvidia second-quarter estimates, but said he is keeping near-term expectations for the company in check due to supply constraints.

"We expect another very good quarter, but we think the bigger upward revisions happen later in the year," Moore said."

The analyst said commentary that Blackwell demand is "insane" is tough to understand with the ongoing supply constraints.

"Demand signals show no signs of moderating, and while it's hard to calibrate exact amount of upside we expect to maintain recent trends."

Price Action: Nvidia stock is up 2% to $143.35 on Tuesday versus a 52-week trading range of $45.01 to $149.77. Nvidia stock is up 197.6% year-to-date in 2024.

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