Nvidia delivered another strong set of quarterly results after the bell on Wednesday, beating estimates. Here's what analysts are saying about the world's most valuable company.
Wedbush analysts, including Dan Ives, issued another typically bullish note on Thursday:
"In another earnings performance for the ages Nvidia delivered a $2 billion top-line beat with $35 billion of sales showing a $5 billion sequential increase driven by flagship data center sales. We would characterize results as another earnings press release from Nvidia that should be framed and hung in the Louvre given these eye popping results and unprecedented growth from the Godfather of AI Jensen and Nvidia.
"The LeBron of chip releases, next generation Blackwell appears to ramping even faster than expected with NO overheating issues and appears to be on a massive demand trajectory ahead of the Street that our Wedbush Global Tech Team is tracking very closely throughout the Asia supply chain."
Konstantin Oldenburger at CMC Markets said Nvidia had exceeded forecasts again, but some question marks remained.
"What stuck in people's minds was the possibility of a slowdown in future growth. The gross margin, which previously only knew one direction — up — to a whopping 75% of revenue, is expected to fall to 'only' 73% in the current quarter.
"Even if the competition can only dream of such figures, investors, who have been accustomed to success, now fear an end to Nvidia's growth story. Whether the fear is justified will become clear when the new chip generation Blackwell is delivered in the coming months," he wrote.
Deutsche Bank analysts said the results drew a "tepid reaction" because its guidance "failed to match some of the loftiest expectations."
They wrote in a note that third-quarter sales came in at $35.1 billion, above the $33.2 billion estimate. However, the fourth-quarter sales guidance was $37.5 billion "was 'only' a touch above the average analyst estimate of $37.1 billion."
"Overall it was deemed to be a slightly underwhelming outcome," they added.
Dan Coatsworth at AJ Bell said Nvidia had again posted blockbuster growth. "What's troubled investors this time was a quarter-on-quarter decline in gross margins, with guidance for them to fall further in the coming quarter, and weaker than expected forward guidance for revenue.
"Investors have enjoyed stellar share price gains from Nvidia over the past two years and that's made them think it is invincible. In reality, a small decline in margins is not a reason to panic, particularly when they are still over 70% which many companies could only dream of. Nvidia is confident margins will rebound as production volumes ramp up for its Blackwell chips."
HSBC analysts wrote in a note that they expect "significant" earnings upside for the 2026 financial year despite gross margin pressure.
Stephen Yiu, who manages the $1.4 billion London-based Blue Whale growth fund, invested 10% of the fund — the limit for any one stock. He told Bloomberg TV he wished he could have bought more Nvidia stock because he's so bullish on AI infrastructure.
"We need to believe in how AI is going to change the world in terms of our day-to-day," he said. "Nvidia remains the center of that AI transformation."
