NVIDIA is about to announce its third quarter results, can the AI boom continue?

NVIDIA will release its financial results for the third quarter of the fiscal year 2025 after the close of trading on November 19th, which is considered one of the most influential financial events of the year by institutions. With artificial intelligence demand entering a critical validation period, this financial report may affect the year-end trend of the US stock market. The market expects the company's quarterly revenue to reach $54.8 billion, with adjusted earnings per share of $1.25, both up more than 54% year-on-year. NVIDIA's previous guidance was $54 billion, but analysts have generally raised their expectations, posing a "high base and high expectations" double test for the company. NVIDIA's weight in major indices has amplified the market impact of the financial report. It accounts for approximately 8% of the S&P 500 index and 10% of the Nasdaq 100 index, with the options market predicting a potential 8% two-way fluctuation in the stock price on the day of the financial report. Meanwhile, with the US government lacking economic data due to a prolonged shutdown, investors are relying more on corporate financial reports to assess market direction. Demand prospects remain a focus. NVIDIA CEO Jensen Huang disclosed that the company has received approximately $500 billion in Blackwell and next-generation Rubin GPU orders, covering until 2026. Several institutions have raised their NVIDIA profit forecasts based on strong demand, with Bank of America raising earnings per share estimates for the fiscal years 2026-2028 by between 3% and 14%. NVIDIA's stock price has risen by approximately 40% this year, but has recently experienced a pullback due to volatility in the technology sector. Additionally, the market's bets on a December interest rate cut by the Federal Reserve have decreased from 90% a month ago to about 63%, exacerbating short-term volatility in technology stocks.