Will Nvidia stock surge or slump in the next few months?

As Nvidia (NVDA) prepares to report its Q3 earnings on Wednesday, the performance of the chipmaker’s stocks and shares is under scrutiny once again.

During its Q2 earnings release in August, Nvidia exceeded forecasts but its shares still fell more than 1%. Many industry observers are wondering whether its Q3 earnings will offer a repeat performance.

Attention was slightly diverted away from all the buzz around earnings recently when the Information reported that Nvidia’s Blackwell graphics processing units (GPUs) were facing issues with overheating when connected to together in its customised server racks.

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As Yahoo Finance UK’s Vicky McKeever reported, shares were subsequently muted in pre-market trading on Monday. At one point they tumbled 3% but somewhat rebounded later in the day.

Responding to the overheating claims, a Nvidia spokesperson told Reuters that the “engineering iterations were normal and expected”.

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Earnings are very much back in focus now. Nvidia is valued at $3.48tn (£2.75tn) but has experienced a gradual decline in growth margins quarter-over-quarter. Still, analysts predict the Magnificent 7 company will comfortably beat estimates again on Wednesday. The immediate market reaction is less predictable, however, with some analysts predicting a stock surge and others forecasting a slump.

What do you think? Will Nvidia’s stock soar again or are you expecting it slump in the coming months? Have your say below in our poll of the week

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