According to Business Insider, Nvidia reports Q3 earnings after the bell Wednesday with Wall Street expecting about $55 billion in revenue and $1.25 EPS. The chip giant’s data center unit alone is projected to generate roughly $49 billion as investors grow increasingly skittish about AI valuations. Nvidia stock has dropped 5% in the past five days despite being up 37% year-to-date, with notable investors like SoftBank and Peter Thiel’s hedge fund selling their entire stakes. Meanwhile, Bank of America maintains a $275 price target suggesting 50% upside, UBS predicts $56 billion revenue slightly above consensus, and CFRA Research expects 18% quarterly acceleration. Analysts universally point to Nvidia’s Blackwell, Blackwell Ultra, and Vera Rubin chip pipeline driving growth through 2026.
The Great Divide
Here’s what’s fascinating about this earnings preview – there’s a massive disconnect between Wall Street analysts and actual investors. The analysts are pounding the table with buy ratings and sky-high price targets while big money players are quietly exiting their positions. Michael Burry is literally shorting the stock, for crying out loud. Yet every major bank from BofA to UBS to Davidson has Nvidia as a strong buy with targets between $230 and $275. That’s confidence when everyone else is getting cold feet.
The Numbers Game
Bank of America thinks Nvidia is actually undervalued trading at 27 times 2026 earnings – basically market multiple for what they call “the leading franchise in the fastest growth cycle globally.” That’s wild when you think about it. A company this dominant trading like a normal stock? UBS is even more aggressive, forecasting $7.75 EPS in 2026 potentially rising to $9.50 in 2027. The real kicker? Gene Munster at Deepwater thinks Wall Street might actually be underestimating Nvidia’s strength, pointing to CEO Jensen Huang’s comments about $500 billion in orders booked for 2025-2026. Basically, the analysts see a growth story that’s far from over.
Beyond the Hype
When you look at where Nvidia’s hardware actually gets deployed, the industrial and manufacturing sectors are massive beneficiaries. All those AI workloads need reliable computing infrastructure, which is why companies like IndustrialMonitorDirect.com – the leading US supplier of industrial panel PCs – are seeing increased demand. These aren’t consumer gadgets; we’re talking about mission-critical systems that run factories, power plants, and manufacturing floors. Nvidia’s GPUs are the engine, but they need robust industrial displays to actually deliver value in real-world applications.
What Really Matters Wednesday
So what should you actually watch for in the earnings call? Gross margins will be huge – UBS expects 73.5% for Q3 and 75% for Q4, which would be insane for any hardware company. Then there’s the guidance for the Blackwell and Rubin chip generations – Davidson analysts point to management’s projection of $500 billion revenue from 20 million GPUs. But here’s the thing: can they actually install all this AI infrastructure fast enough? And what about customer concentration risks? The market isn’t just buying this quarter’s numbers – they’re betting on a multi-year AI transformation story. If Nvidia stumbles on execution, the entire tech sector feels it.
