Nvidia Q3 Earnings Preview: Analysts Forecast 88% Surge in Growth

However, Nvidia faces its share of challenges. Bears highlight risks such as excess inventory, increasing competition from in-house solutions developed by competitors, and regulatory scrutiny. Notably, the U.S. Department of Justice is investigating Nvidia for potential antitrust violations, which could create long-term uncertainty.

Additionally, supply chain constraints, particularly related to Nvidia’s Blackwell supply chain, have caused short-term margin pressures, which may impact production efficiency.