Nvidia is set to announce its third-quarter results on Wednesday, November 20, 2025. This update is highly anticipated and could significantly impact the stock price. Here are two reasons to buy Nvidia before Thursday’s earnings release and two reasons to hold off.
First, Nvidia has a track record of beating expectations. In its Q2 update, the company expects revenue of around $32.5 billion, which is slightly lower than the average analyst estimate of $33.07 billion. However, this is not an unusual occurrence for Nvidia, as it has topped Wall Street’s earnings estimates for seven consecutive quarters.
Second, good vibes from major customers and rivals could indicate a strong Q3 update. Amazon Web Services (AWS), Microsoft Azure, and AMD are all significant customers or competitors of Nvidia. In their latest earnings calls, they mentioned increased demand for chips and AI infrastructure, which bodes well for Nvidia’s GPUs. If Nvidia can deliver on its promises, the stock could soar.
However, there are also reasons to hold off on buying Nvidia stock before Thursday. First, beating expectations might not be enough to drive the stock higher. In the past, Nvidia has beaten earnings estimates but still saw its share price fall due to other concerns. Investors should listen carefully to management’s comments during the quarterly conference call and look for any potential red flags.
Second, potential issues with Nvidia’s Blackwell GPUs could impact the stock. There have been reports of overheating problems with these chips, which could raise concerns among investors. If Nvidia doesn’t provide reassurance about the issue during the Q3 call, the stock could take a hit.
Ultimately, what matters is how Nvidia performs over the long run. Unless the Blackwell issues are more serious than they seem at this point, this stock should still be attractive to investors focused on the long term.
Source: https://www.fool.com/investing/2024/11/19/3-reasons-to-buy-nvidia-stock-hand-over-fist-befor