Nvidia's Q3 Expectations: High Performance Signals

Nvidia (NASDAQ:NVDA) is entering the week of its Q3 earnings announcement with high expectations. Analysts are anticipating another strong quarter due to the demand for AI chips and rapidly growing data center expenditures. Susquehanna raised its price target from $210 to $230, referencing significant infrastructure spending plans from major cloud players over the next two years and a smooth GB300 ramp.

Nvidia is set to announce its Q3 earnings after the market close this Wednesday. Sector reviews are also positive. Suppliers have noted strong demand for AI servers, while partners like Foxconn have already met their revenue targets for next year. This enhances Nvidia's short-term order visibility. Analysts expect Nvidia to increase the average selling prices of its new Blackwell Ultra chips; meanwhile, it is anticipated that the Blackwell and Rubin product cycles will continue to provide multi-year visibility.

Wall Street expects Nvidia's Q3 revenue to reach approximately $54 billion, with earnings per share projected at $1.24. This would represent a sharp increase compared to the previous year. Gross margins are also expected to move toward the 70% level as the product mix shifts toward higher systems.

Investors will closely monitor not only the key figures but also the guidance, especially any demand signals from the U.S. and China, as they will be significant. Strong results could sustain momentum, but any signs of slowdown could lead to market volatility.