Nvidia Set for Major Gains as Blackwell Drives Data Centre Surge
Nvidia is gearing up to report its third quarter earnings for fiscal year 2026 on November 19, 2025, and investors are watching closely. Analysts are anticipating a strong performance, largely driven by the ramp-up of the company’s Blackwell architecture, which continues to fuel impressive growth in its data centre business. After a solid second quarter, where Nvidia beat Wall Street expectations, the market is eager to see whether this momentum can be sustained.
In Q2 FY2026, Nvidia showcased its dominance in the AI chip market, delivering revenue of $46.74 billion—well above the projected $46.06 billion. This represented a staggering 56% increase from the previous year and extended Nvidia’s streak of nine consecutive quarters with over 50% year-on-year growth. Adjusted earnings per share came in at $1.05, up 54% from last year, while net income reached $26.4 billion under GAAP, marking a 59% year-on-year increase. Despite these strong numbers, data centre revenue slightly missed expectations, and ongoing US-China export restrictions kept the share price reaction modest. Nevertheless, Nvidia’s CEO, Jensen Huang, described Blackwell as a generational leap for AI computing, with Blackwell Ultra production ramping up at full speed amid extraordinary demand.
Also Read:- Bluejays Fight Hard, Fall to South Dakota State in Season Opener
- Chesterfield Set for Key Clash Against Liverpool U21 in Vertu Trophy
Looking ahead, Nvidia’s Q3 guidance suggests revenue of around $54 billion, implying a quarter-on-quarter growth of 16% and maintaining year-on-year growth of over 50%. Data centre sales are expected to top $48 billion as Blackwell production scales further, while gaming revenue is forecast to rise to $4.44 billion. Gross margins are projected at 73.3% GAAP and 73.5% non-GAAP, reflecting continued efficiency. Analysts are particularly focused on updates regarding Blackwell Ultra deliveries, which could contribute an additional $8–12 billion in revenue for Q3, up from $5–7 billion in Q2.
Beyond production, Nvidia has been deepening its AI ecosystem through what some call “circular deals”—strategic financing and partnership arrangements that secure forward GPU purchases. While supporters argue these deals reinforce Nvidia’s leadership in the AI supply chain, critics caution they could inflate revenue figures artificially. Still, major partners like OpenAI, Oracle, and CoreWeave have committed substantial investments, highlighting strong confidence in Nvidia’s technology.
From a market perspective, Nvidia shares have experienced significant volatility. The stock rallied roughly 143% from its April low of $86.62 to a recent high near $112 before pulling back slightly. Analysts now view the trend as bullish, with technical support levels at $178.91 and $184 offering a foundation for potential retests of all-time highs near $212. Options market activity also points to an expected post-earnings move of around ±8.5%, meaning the share could rise to $215 or dip to $183.
Wall Street remains overwhelmingly positive on Nvidia, with 37 “buy” ratings, one “hold,” and one “sell,” giving the stock a TipRanks Smart Score of 9 out of 10. Loop Capital recently raised its price target to $350, projecting that Nvidia’s next wave of AI adoption could nearly double GPU shipments over the next 18 months and push quarterly earnings close to $3 per share. With AI-driven demand accelerating and the Blackwell platform scaling rapidly, Nvidia appears poised for another period of robust growth, keeping investors’ attention firmly on its upcoming earnings report.
Read More:
0 Comments