The anticipation is building as Nvidia (NASDAQ:NVDA) heads into today’s fiscal third-quarter earnings report. The chip giant has a long track record of blowing past expectations, and many on Wall Street are betting it’s about to deliver another standout performance.
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And the broader setup reinforces that view. With most major tech players having already posted their quarterly results, the signals coming in point to an ecosystem that’s still running hot. Hyperscalers are continuing to ramp up AI capex as the race for compute power accelerates. Heavyweights like Amazon and Alphabet are maintaining their pace of investment, and TSMC – Nvidia’s manufacturing partner – has likewise indicated that demand for AI chips remains strong.
However, there are some storm clouds beginning to form on the horizon. Concerns over an AI bubble are surfacing, even prompting legendary investor Michael Burry to take a short position against Nvidia.
And as top investor Adria Cimino notes, that tension means NVDA could swing sharply in either direction come November 19.
“Recent worries about a bubble in the AI market also might put pressure on the stock – regardless of the quality of Nvidia’s report,” explains Cimino, who’s ranked among the top 1% of stock pros on TipRanks.
That being said, Cimino is more focused on the long-term horizon, pointing to surging demand, with total shipments for 2025 and 2026 expected to reach roughly $500 billion. And it’s not just sales that are impressive – the company also enjoys a gross margin that tends to surpass 70%.
“Even if the stock falters following the earnings report, this is unlikely to impact your returns if you hold on for several years,” adds Cimino.
From Cimino’s perspective, the company’s 41x forward earnings estimates remain reasonable given Nvidia’s expected future earnings power. That said, investors looking to trim risk or diversify might choose to lock in some gains at these levels. Ultimately, though, Cimino emphasizes that the long-term trends far outweigh the short-term risks.
“It’s important to set aside short-term trends and turbulence and consider the long-term picture,” recommends Cimino. (To watch Adria Cimino’s track record, click here)
Wall Street seems firmly on board with the long-term approach as well. With 37 Buys and just a single Hold and Sell apiece, NVDA boasts a Strong Buy consensus rating. Its 12-month average price target of $243.09 suggests an upside approaching 30%. (See NVDA stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.