Nvidia stock 
NVDA and Palantir Technologies 
PLTR They are greatly benefiting from increased spending on artificial intelligence (AI) technology. Both companies have seen their stock prices soar this year, driven by the rapid adoption of AI across their industries. But while both are big beneficiaries of the AI boom, Palantir recently made headlines with its impressive third-quarter earnings report.
Since Palantir announced its third-quarter results on Nov. 4, its stock price has risen more than 45%. The rise signals growing demand for the company’s artificial intelligence platform (AIP), which is rapidly gaining traction among enterprise customers. Investors welcomed the results as Palantir’s AI-powered services continue to solidify its market position.
Now, all eyes are on Nvidia as it prepares to announce its third quarter results next week. The big question is: Will Nvidia’s stock price reflect Palantir’s subsequent profit surge?
There are many reasons for optimism. Nvidia is a leader in graphics processing units (GPUs), a critical component driving the AI revolution. The company’s AI solutions are in high demand from data centers to cars. This makes NVIDIA the best-performing mega-cap stock this year, and expectations are rising as its third-quarter report approaches.
With this background in mind, let’s explore whether Nvidia stock’s momentum continues after its third-quarter earnings release.
Looking back at Nvidia’s Q3 expectations
Nvidia is scheduled to announce its fiscal 2025 third-quarter earnings after the closing bell on Wednesday, November 20th. The company forecasts third-quarter sales of $32.5 billion, a 79% increase year-on-year, although less than triple. -digit growth seen in previous quarters. This slowing growth rate is a natural result of Nvidia’s rapidly expanding revenue base.
Nevertheless, the company’s data center division remains strong and will likely contribute significantly to sales growth.
The company’s margins may remain under pressure as data center configurations continue to migrate to new products, but higher sales could provide a significant boost to earnings. Analysts expect NVIDIA’s third-quarter earnings per share (EPS) to be $0.70, reflecting approximately 84% year-over-year growth.
Factors driving up Nvidia stock
Nvidia continues to solidify its position as a major player in the AI space, driven by strong demand across its Hopper, compute, and networking platforms. As the company prepares to release its third-quarter results, several factors suggest that Nvidia could deliver impressive numbers and send its stock price higher.
Nvidia’s main growth driver is its data center division, which has grown by $4 billion every quarter over the past year. The segment’s revenue reached $26.3 billion in the second quarter, reflecting 16% quarter-over-quarter growth and an impressive 154% year-over-year increase.
Going forward, we expect Nvidia’s data center business to continue its momentum, driven by continued demand from major cloud service providers (CSPs) and large enterprises. A significant portion of this growth is expected to come from continued adoption of the Hopper architecture. The latest Hopper H200 platform, introduced in Q2, offers enhanced memory bandwidth and is increasingly popular among large CSPs and enterprises. With supply constraints easing, Nvidia expects demand for Hopper products to continue in the second half of fiscal 2025.
In addition to Hopper, Nvidia is preparing to launch its next-generation Blackwell platform. Early demand for Blackwell has been overwhelming, with orders already exceeding available supply. Nvidia expects Blackwell to generate billions of dollars in revenue in the fourth quarter, providing a solid foundation for continued expansion and potentially fueling further share price appreciation in fiscal 2025. .
Nvidia’s networking division is also experiencing rapid growth, driven by increased demand for Ethernet solutions tailored to AI applications. Nvidia’s networking products are gaining momentum as more enterprises demand high-performance networking capabilities to support AI workloads, with the potential to contribute significantly to revenue in the third quarter and beyond, further diversifying the company’s revenue streams There is.
What’s next for Nvidia stock?
If Nvidia hits its third-quarter targets and provides positive guidance for the fourth quarter and next fiscal year, the stock could rise significantly, similar to Palantir’s recent rally.
Additionally, Wall Street is becoming more optimistic about NVIDIA’s prospects as the company approaches its third-quarter earnings release, reflected in its consensus rating of Strong Buy.
On the date of publication, Amit Singh did not have (directly or indirectly) any positions in any securities mentioned in this article. All information and data in this article is for informational purposes only. For more information, please see the Barchart Disclosure Policy here.
