Nvidia Earnings Preview: (NVDA) Stock Continues To Outperform Despite Correction

Nvidia Corporation (NVDA) is set to release its third-quarter fiscal 2026 earnings report today, after market close, and markets are holding their breath. The stock is currently down 7.26% in the last week ahead of the print, reflecting a broader market hesitancy ahead of the crucial earnings announcement.

Despite this short-term pullback, Nvidia remains a dominant force in the semiconductor and AI landscape, having briefly surpassed a market valuation of $5 trillion. NVDA continues to trade 31.13% higher YTD, and a further 0.84% in the pre-market, more than doubling the performance of the S&P500 (+12.76%) over the same timeframe.

Analysts are projecting strong Q3 results, with an expected EPS of $1.25 and revenue around $54.98 billion. This represents substantial 56.73% year-over-year growth, fueled by insatiable demand for Nvidia’s GPUs in data centers and AI applications. The market's anticipation is palpable, with many expecting Nvidia to deliver a “beat and raise” quarter, exceeding expectations and providing optimistic guidance for the future.

The current price reflects a correction from its high of $212.19, a level achieved amidst a surge of optimism surrounding the company's leading role in the burgeoning AI market. Is the pullback a temporary one, or a sign of further pain to come?

Wall St continues to be bullish. Evercore ISI analysts have reiterated an “Outperform” rating with a price target of $261. Their conviction stems from strong demand momentum and improved supply chains, key factors that have propelled Nvidia's growth. The Motley Fool has also expressed optimism, predicting that Nvidia's stock could surge after earnings, emphasizing the company's robust growth trajectory.

However, it's not all smooth sailing for the AI titan. The sector has been subject to increased scrutiny, with some expressing concern about a potential AI bubble. Michael Burry, known for predicting the 2008 financial crisis, has voiced concerns about inflated valuations in AI megacap stocks like Nvidia. This sentiment is echoed by recent stock declines in companies like CoreWeave, which missed revenue guidance, fueling the debate about whether the current enthusiasm for AI is sustainable.

Nvidia's Q3 earnings report will be a critical test of its ability to maintain its growth momentum in the face of increasing competition and macroeconomic headwinds. Markets will be closely watching for signs of slowing demand, margin pressure, or any impact from the ongoing trade tensions. While the long-term outlook for Nvidia remains positive, the stock may face increased volatility in the near term as the market grapples with these uncertainties.