Nvidia will be the last of the Magnificent Seven companies to report earnings for the third quarter, delivering results after the bell on Wednesday. To say the stakes are high would be an understatement.

Investors are highly anxious heading into the report as the broader AI trade has come under pressure in the last month. The chip titan’s stock is still up 37% year-to-date, but it has fallen by about 5% in the last five days.

Its decline has led the broader tech sector lower, and investors are increasingly questioning whether the premium valuations commanded by top AI names are justified.

The implications of Nvidia’s coming earnings report are significant, not just for Nvidia but for many of its tech peers. Valuations, concerns about returns on AI capex, and the overall demand picture for expensive GPUs are top of mind for investors. Meanwhile, SoftBank and Thiel Macro, the hedge fund of Peter Thiel, have sold off their entire Nvidia stakes recently, while “The Big Short” investor Michal Burry has revealed he’s betting against it.

Wall Street analysts, however, seem more bullish than their buyside peers. The mood heading into the report is bullish, and banks expect Nvidia to continue dominating the AI hardware trade in the coming quarters.

Wall Street estimates that Nvidia will report about $55 billion in revenue and earnings per share of $1.25 for the third quarter. Revenue in its key data center unit is expected to be about $49 billion.

Bank of America Analysis

Bank of America still sees Nvidia as undervalued relative to its dominance of AI hardware. Analyst Vivek Arya reaffirmed a buy rating and updated the bank’s forecast to reflect that his team has updated its per-share estimates for the coming fiscal year.

While Arya notes that Nvidia may flick at a complicated macro outlook in the earnings call, he expects the micro outlook to remain solid. Additionally, his team is optimistic that Nvidia’s product pipeline, the Blackwell, Blackwell Ultra, and Vera Rubin chips, will help drive growth in 2026.

UBS Perspective

UBS analyst Timothy Arcuri predicts that Nvidia’s revenue will come in slightly above Wall Street estimates at $56 billion. His team predicts Nvidia’s calendar EPS could reach $9.50 per share in 2027.

Arcuri noted that while some investors have expressed concern regarding Nvidia’s gross margins, UBS is confident that the company can keep margins high, forecasting 73.5% for Q3 and 75% for Q4.

DA Davidson Assessment

In DA Davidson’s preview, analyst Gill Luria made it clear that his team doesn’t think AI demand is set to slow in the coming year.

He said that despite negative speculation and jitters around valuations, the firm believes Nvidia will maintain its dominance, even if competition rises and trade tensions with China persist.

Deepwater Insight

Gene Munster, managing partner at Deepwater Asset Management, says Wall Street might actually be underestimating Nvidia’s strength. In his preview, Munster noted that he believed some analysts are not properly accounting for CEO Jensen Huang’s positive projections for its 2026 product lineup.