NVIDIA Results Set to Challenge AI Boom's Strength as Doubts Over Valuation Persist

NVIDIA (NVDA) shares climbed 1.1% in pre-market trading on November 19, 2025, as the market awaited the chip giant’s third-quarter earnings—a pivotal moment expected to challenge the strength of the ongoing AI-fueled rally. The stock, which

, came under increased scrutiny as doubts about AI valuations grew and major investors exited, including SoftBank’s $5.8 billion sale . Experts anticipate revenue of $54.9 billion, representing a 57% increase from last year, and adjusted earnings per share (EPS) of $1.26 , but some warn that even minor misses could spark significant price swings .

The upcoming earnings release, scheduled after the market closes, has become a key indicator for the technology sector at large. NVIDIA’s results are seen as a reflection of the current surge in AI infrastructure investment, with CEO Jensen Huang previously

through 2026 from its Blackwell and Rubin product lines. Still, worries about inflated valuations persist, especially as the S&P 500 lags and . Analysts at Bank of America , while Morgan Stanley increased its Q3 revenue outlook to $55 billion, citing strong demand for Blackwell .

Investor attention this week isn’t limited to

. The release of Federal Reserve meeting minutes and delayed economic indicators, such as the , could also sway market sentiment ahead of possible rate cuts in December. Meanwhile, retail leaders like Walmart and Home Depot are preparing to announce their results, .

Historically,

, with swings of 6–10% often seen in the days following its reports. Recent turbulence has been intensified by global events, such as , and domestic challenges, including . Nevertheless, , with Meta, Microsoft, and Amazon all expanding their data center operations—a trend that directly benefits NVIDIA’s AI hardware business.

Experts remain split on what will follow the earnings release.

in AI’s sustained expansion, while disappointing results may intensify concerns about excessive valuations. Joseph Moore of Morgan Stanley pointed to a “significant uptick” in cloud investment, forecasting $142 billion in sector capital expenditures for 2026 , while John Waldron of Goldman Sachs cautioned that the market could see further declines .

With shares trading near $183.68

, institutional investors accumulating in the $175–$185 range indicate quiet confidence , though retail traders face considerable risk. As the fate of the AI rally hangs in the balance, NVIDIA’s earnings could reshape the outlook for both the company and the broader technology sector.