Nvidia Corp (NASDAQ:NVDA, ETR:NVD) is set to deliver another earnings beat for the third quarter when the chipmaker reports its latest financial results after US markets close on November 19, according to UBS analysts.
Wall Street analysts on average expect revenue of $54.6 billion, representing year-over-year gorwht of about 55%, and earnings per share of $1.23, up 52%.
The UBS analysts project revenue will come in higher at $56 billion, above the company’s guidance of $54 billion.
The expect Nvidia’s gross margin will hold steady at around 73.5% for the quarter, rising to as high as 75% in fiscal Q4.
The analysts wrote that they remain comfortable with NVIDIA sustaining mid-70% margins through calendar 2026 despite investor concerns over higher memory and component costs.
Looking ahead, UBS expects Nvidia to guide fiscal Q4 revenue to around $63 billion to $64 billion, though it believes the company could set expectations a few billion higher given production capacity and existing inventory.
UBS identified two main areas of investor debate ahead of the report, the first being the lingering impact of US restrictions on shipments to China.
The second is whether constraints such as power availability, memory supply, or capital access among major AI customers could limit Nvidia’s earnings growth.
“A big focus of the call will clearly be how quickly all of this AI infrastructure can be installed and any customer concentration risks that may develop,” they wrote.
Following recent supply chain checks and updates shared during Nvidia’s October GTC conference, UBS raised its unit shipment estimates, citing stronger-than-expected GPU production and improved CoWoS capacity at key supplier TSMC.
The firm now expects GPU output to have risen roughly 30% quarter-over-quarter in calendar Q3 and forecasts that Nvidia could ultimately ship as many as 10 million chips over 2024 to 2026 as supply channels clear and AI rack deployments accelerate.
UBS maintained its ‘Buy’ rating and $235 price target on the company, representing roughly 25% upside from Nvidia’s closing price on Friday of $188.15.