Nvidia Earnings on Deck: Will It Spark a Breakout or More Uncertainty?

Nvidia Corp. is set to report earnings on Wednesday, and investors are eagerly watching for signs of momentum. The stock has been mostly flat since June, despite bouts of volatility. Will this report be the catalyst for a breakout, or will lingering concerns keep investors on edge?

Bullish Sentiment: A Rally Waiting to Happen?

Mizuho analyst Jordan Klein sees a potential surge ahead, noting that “a lot of money on the sidelines” could rush in if Nvidia (NVDA -3.09%) delivers strong results. He expects the stock to move “higher before lower” following its recent stagnation.

A key reason for his optimism? Demand for Nvidia’s new Blackwell lineup is significantly outpacing supply. With production ramping up in the second half of the year, Klein believes Nvidia is well-positioned for continued growth.

Concerns Loom: DeepSeek and Microsoft Uncertainty

Despite the bullish outlook, some investors remain cautious. One source of concern is Chinese AI firm DeepSeek, which has sparked debate over whether future AI development will require less hardware—potentially impacting Nvidia’s long-term dominance.

Another worry stems from Microsoft (MSFT -1.03%), which reportedly canceled some data-center leases. While this has added to market jitters, Mizuho’s Vikram Malhotra suggests it may simply be a “course correction” rather than a sign of reduced AI infrastructure investment.

Skepticism Persists: No Immediate Catalyst?

Stifel analyst Ruben Roy believes Nvidia’s earnings may not be the game-changer some investors hope for. With market uncertainty still lingering post-DeepSeek, he doubts earnings alone will drive a strong upside move.

The Bigger AI Picture: A Long-Term Win for Nvidia?

Melius Research’s Ben Reitzes takes a broader view, arguing that demand for AI chips is already being validated. Tech giants are in an arms race to dominate AI, and Nvidia stands to benefit from this relentless spending.

Reitzes likens Nvidia’s hardware to Ferraris—elite, high-performance chips that companies like Elon Musk’s xAI highly value. Despite the short-term noise, he believes Nvidia will remain the go-to choice as AI workloads continue to grow.

Bottom Line: Make-or-Break Moment for Nvidia?

With earnings approaching, Nvidia finds itself at a crossroads. Will strong demand fuel a stock rally, or will lingering concerns weigh on investor sentiment? Either way, Nvidia’s role in the AI revolution is far from over.