Nov. 19 Will Be a Big Day for Nvidia. Should You Buy or Sell the Stock Now?

Nvidia, the dominant AI chip designer, is poised to report its Q3 FY2026 earnings on November 19 amid high expectations, driven by its leading market position, consistent double and triple-digit revenue growth, and gross margins exceeding 70%. The company anticipates approximately $500 billion in cumulative shipments for its Blackwell, Rubin, and networking platforms over 2025-2026, a projection supported by strong demand from major AI customers and its chip manufacturer, TSMC. However, despite robust underlying business indicators, the stock's immediate reaction post-earnings could be tempered by already elevated market expectations and broader concerns regarding a potential AI market bubble.

Analysis

Nvidia, a dominant player in the artificial intelligence (AI) chip market, is set to report its Q3 FY2026 earnings on November 19, with high investor expectations. The company has consistently demonstrated strong financial performance, characterized by double and triple-digit quarterly revenue growth and gross margins exceeding 70%. This robust profitability underscores its leading position and operational efficiency within the rapidly expanding AI sector.

The outlook for Nvidia remains highly optimistic, evidenced by projected cumulative shipments of its Blackwell, Rubin, and networking platforms totaling approximately $500 billion over 2025-2026. This guidance is further corroborated by strong demand signals from key AI customers like Amazon and Alphabet, and positive reports from its chip manufacturer, Taiwan Semiconductor Manufacturing (TSM), regarding robust demand. These factors collectively suggest continued market leadership and significant revenue potential.

Despite strong underlying fundamentals and an optimistic outlook, Nvidia's stock faces potential short-term volatility due to extremely high market expectations. Any minor disappointment in the earnings report, or broader concerns about an AI market bubble, could temper immediate post-earnings performance. The stock's current valuation at 41x forward earnings, while considered reasonable by some for its long-term prospects, highlights the premium investors are currently paying.

Key Decisions for Investors

• Investors with a long-term horizon should consider maintaining or initiating positions in Nvidia, given its dominant AI market position, strong financial performance, and optimistic future guidance.
• Be prepared for potential short-term stock volatility post-earnings due to elevated market expectations and broader AI market sentiment, which could lead to a muted or negative reaction despite strong results.
• Existing long-term holders might consider selectively locking in some gains for portfolio diversification, especially if their Nvidia allocation has become disproportionately large.