‘Good News’ Is Coming for Nvidia Stock, So Buy NVDA Shares Here
AI stocks often swing sharply ahead of major earnings, especially when investors start debating whether the sector is entering “bubble territory.” Yet even in these volatile moments, a few industry leaders stand apart, companies whose fundamentals and demand trends continue to overpower market noise. Nvidia (NVDA), the undisputed backbone of the AI revolution, is one of them.
Now, the chip giant is heading into its Nov. 19 quarterly report with rising optimism on Wall Street. Analysts at Wedbush, led by Dan Ives, are urging investors to “expect good news,” pointing to strong hyperscaler spending, bullish supply-chain checks, and surging demand for Nvidia’s Blackwell platform. Wedbush believes Nvidia’s guidance and commentary could act as a powerful year-end catalyst.
For investors looking to buy NVDA on strength, not fear, here’s why this setup matters.
Based in California, Nvidia has grown from a small graphics-chip innovator into a global powerhouse in advanced computing. With major operations across Asia, the company now drives AI, cloud computing, and high-performance graphics.
This year, Nvidia expanded aggressively, forging key partnerships in Europe, the UAE, and other global hubs, while securing major chip supply deals. Its full-stack approach, combining chips, systems, and software, powers data centers, gaming, automotive, and industrial AI, building strong relationships with hyperscalers and enterprises. These moves fuel steady demand as AI adoption accelerates worldwide, cementing Nvidia’s role as a central tech leader.
Valued at roughly $4.5 trillion, Nvidia shares have surged 35% year-to-date (YTD) in 2025, reclaiming record highs midyear and in October as AI demand soared. Over the past month, the stock pulled back slightly from late-October peaks, reflecting investor focus on record earnings, robust AI adoption, and strategic partnerships driving long-term growth.
Nvidia’s valuation stands out as notably high, with a price/sales (P/S) ratio of 28, far above the sector median of 3, signaling a premium stock. Moreover, its price/book (P/B) ratio of 46 also exceeds the sector median of 3. However, the company’s growth metrics are extraordinary, with forward revenue growth projected at 68%, dramatically outpacing the sector average of 8%, which helps justify its lofty valuation.
Nvidia is all set to announce the third-quarter 2026 results on Wednesday after the closing bell, and investors will be keen on whether the company can maintain the lead on artificial intelligence computing amid the supply shortages and pressure reemerging in China.
Wall Street has forecast earnings of $1.25 and revenue of $54.83 billion, which is 56% higher than the same period last year. With the growing sales of its Blackwell chips, Nvidia has steered revenues towards the range of approximately $54 billion, with data center sales, which include its products, estimated to be greater than $48 billion. There should be 73.5% gross margins of non-GAAP.
Analysts believe that fourth-quarter guidance will be the driving factor for the stock. In Q4, market forecasts revenue of $61.88 billion, and data center sales are close to $56 billion. The progress on the Blackwell shipment, any additional delays into fiscal 2027, or a glimpse of hyperscaler demand will be monitored closely.
Following the H2O write-down of $4.5 billion in the previous quarter, China is now a swing factor, not to mention the export ban. The post-earnings sentiment will rely on how the management sounds on the geopolitical risks and supply availability.
Nvidia CEO Jensen Huang just announced combined 2025-26 orders of $500 billion, including Blackwell GPUs, next-generation Rubin chips, and networking components. The figure is seen by analysts as a pointer to the fact that 2026 revenues, especially in data centers, might exceed previous expectations by up to $60 billion.
It is still strengthening its relationships with big AI clients, such as Alphabet (GOOG)(GOOGL), Amazon (AMZN), Microsoft (MSFT), and Meta (META), and has invested strategically, such as up to $10 billion in OpenAI equity related to the purchase of GPUs, $5 billion with Intel to enhance interoperability of chips, and a $1 billion investment in Nokia (NOK) to distribute GPUs into telecom machinery.
The available options for Nvidia imply low post-earnings returns. The stock is highly volatile with a high position in the bull markets; thus, it may not be able to push past $200, and call options may go down at a very rapid rate following the outcomes.
Nvidia has drawn fresh bullish notes ahead of its Nov. 19 Q3 report, with several big firms nudging up price targets and flagging a likely “beat and raise” quarter. Morgan Stanley’s Joseph Moore raised his target to $220, calling for one of Nvidia’s strongest results yet.
Goldman Sachs lifted its target to $240 and said it expects Nvidia to outpace estimates and deliver upside to guidance.
Oppenheimer moved to a $265 target, keeping an “Outperform” view and pointing to continued hyperscaler demand and platform strength driving upside.
Wedbush reiterated an “Outperform” and a $210 target, urging investors to “expect good news” based on supply-chain checks and Blackwell momentum.
Overall, Nvidia got a “Strong Buy” rating consensus from all 47 analysts in coverage. The average 12-month price target set by bullish groups is $225, which implies 21% upside potential. Yet the lone Wall Street “sell” on Nvidia is Jay Goldberg of Seaport Research. He initiated coverage with a “Strong Sell” rating Street-low $100 target and has warned the AI boom looks like a bubble, citing risks such as TSMC capacity constraints and uncertain hyperscaler spending.
On the date of publication, Nauman Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com