Investors are eagerly awaiting semiconductor giant Nvidia’s (NVDA) Q3 earnings, scheduled to be announced on Wednesday, November 19. Ahead of the results, top Bank of America analyst Vivek Arya reiterated a Buy rating on Nvidia stock with a price target of $275. Arya noted that Nvidia faces high earnings expectations and growing concerns over artificial intelligence (AI) capital spending, which he believes will be addressed as broader market volatility eases. Trading at 27x and 21x his calendar year 2026 and 2027 estimates, respectively, Arya finds NVDA stock’s valuation “compelling.”
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The analyst added that his $275 price target is now based on 30x his 2027 earnings estimate, rather than 44× his 2026 earnings estimate, as he has extended his model to look further ahead.
Meanwhile, Wall Street expects Nvidia to report a 54.3% year-over-year rise in Q3 FY26 earnings per share (EPS) to $1.25. Revenue is estimated to grow by 56.3% to $54.83 billion.
Top Analyst Weighs in on Nvidia Stock Prior to Q3 Earnings
Arya highlighted that Nvidia already shared the big news at its GTC event – about securing $500 billion in Blackwell and Rubin orders for calendar year 2025 and 2026, which is 10% to 15% above expectations. Given this backdrop, the 5-star analyst thinks that the focus will be on macro factors, including hyperscaler spending, supply constraints, and also other issues like growing competition, as OpenAI (PC:OPAIQ) added Broadcom (AVGO) and Advanced Micro Devices (AMD) to its supplier list and Google’s (GOOGL) Tensor Processing Units (TPUs) gain traction.
Furthermore, Arya expects management to reassure investors about the demand and supply position. He sees the pullback in Nvidia stock following the GTC order news as a “contrarian positive” heading into Q3 earnings. He contended that concerns over hyperscalers’ spending are generally seasonal, peaking in the fourth quarter, and resolve when the new year begins and cloud companies give their capex projections.
The analyst highlighted Nvidia’s attractive pipeline, saying, “NVDA is the only merchant chip supplier with proven full-stack, rack-scale execution in large AI clusters, first with Blackwell (GB200), then with Blackwell Ultra (GB300) and next year in Vera Rubin (VR), so 3 gens of experience by 2HCY26E.”
Is NVDA Stock a Buy, Sell, or Hold?
Several analysts are upbeat about Nvidia’s Q3 earnings. For instance, top Evercore analyst Mark Lipacis expects the chip company to deliver beat-and-raise results.
Ahead of Q3 earnings, Wall Street has a Strong Buy consensus rating on Nvidia stock based on 37 Buys, one Hold, and one Sell recommendation. The average NVDA stock price target of $242 indicates 27.3% upside potential. NVDA stock has risen 42% year-to-date.
