AI Headlines: NVIDIA Set to Release Earnings!

Next Wednesday, November 19, NVIDIA will announce its quarterly earnings after the market closes—a report that investors are eagerly anticipating.

On November 10, Citi maintained a “Buy” rating on NVIDIA, raising its price target from $210 to $220 per share. The report addressed concerns over what some call “AI spending hype.” Analysts Atif Malik and Papa Sylla highlighted that despite uncertainties about funding, a fundamental fact remains: AI chip supply will stay below demand until at least 2026 due to constraints in advanced packaging (CoWoS) capacity.

Citi also noted NVIDIA’s current P/E ratio of approximately 28, offering a valuation advantage over AI peers Broadcom (38) and AMD (37). Last Friday, the Nasdaq briefly dropped 1.9% intraday before rebounding to close up 0.1%. NVIDIA’s modest gains last week set a stable stage for its upcoming earnings report.

Institutional investors are making moves. Bridgewater’s Q3 holdings reveal a dramatic reduction in NVIDIA shares, from 7.23 million to 2.51 million—a 65.3% decrease. The firm also trimmed stakes in Amazon, Alphabet, and Meta. Meanwhile, SoftBank liquidated all NVIDIA shares in October, cashing out $5.83 billion, triggering market reactions.

AI-related stocks have been volatile. Oracle fell over 9% last week, while data center cloud provider CoreWeave plunged nearly 30%. The Verge highlighted CoreWeave’s heavy dependence on NVIDIA, questioning whether its business model can withstand shifts in AI demand.

Mohamed El-Erian, Allianz’s Chief Economic Advisor, described the market as experiencing a “rational bubble,” acknowledging both massive potential gains and inherent risks. Mary Callahan Erdoes, CEO of JPMorgan Asset & Wealth Management, advised focusing on AI’s long-term opportunities rather than short-term bubble concerns.