Evercore Sees a Beat and Raise for Nvidia’s Q3 Earnings, Calls NVDA Stock a ‘Top Pick’

Nvidia (NVDA) is poised to report robust Q3 FY26 earnings on November 19, with Wall Street anticipating a 54.3% year-over-year EPS increase to $1.25 and 56.3% revenue growth to $54.83 billion. Evercore analyst Mark Lipacis, a prominent bull, expects a "beat-and-raise" driven by strong demand for GB200/GB300 and sees significant upside potential, citing CEO Jensen Huang's $500 billion pipeline target by 2026, which considerably exceeds current analyst estimates for next-gen platforms. Despite broader market concerns, NVDA's valuation appears attractive with a 30x next 12 months P/E below its 9-year median and a 0.55x PEG ratio, leading to a consensus "Strong Buy" rating and an average price target of $242, implying 27.3% upside.

Analysis

Nvidia is poised for a robust Q3 FY26 earnings announcement on November 19, with Wall Street anticipating a 54.3% year-over-year EPS increase to $1.25 and 56.3% revenue growth to $54.83 billion. Evercore analyst Mark Lipacis, a highly-ranked analyst, maintains a Buy rating and expects a "beat-and-raise" driven by improved GB200 and GB300 availability, despite demand continuing to outstrip supply. This positive sentiment is echoed by a consensus "Strong Buy" rating from 37 analysts.

A significant upside potential is indicated by CEO Jensen Huang's $500 billion pipeline target for Blackwell and Rubin platforms by calendar year 2026, which substantially exceeds Wall Street's current $335 billion estimates for these next-gen offerings. Furthermore, NVDA's current NTM P/E multiple of 30x is below its 9-year median of 35x, and its 2026 PEG ratio of 0.55x is significantly lower than the fair value of 1.0x and the 1.4x average for Evercore's AI coverage, suggesting an attractive valuation.

Despite broader market concerns regarding rising competition, uncertainty in the China business, and AI stock valuations, the prevailing analyst sentiment remains strongly positive. The average NVDA stock price target of $242 implies a 27.3% upside potential, reinforcing the bullish outlook ahead of the earnings announcement.

Key Decisions for Investors

• Investors should closely monitor Nvidia's Q3 FY26 earnings report for a potential "beat-and-raise" and any updates on the Blackwell and Rubin platform pipeline, which could validate the significant upside suggested by CEO Huang's projections.
• Given the attractive valuation metrics relative to historical averages and peers, and the strong analyst consensus, maintaining or initiating a long position ahead of earnings may be considered, while acknowledging risks from competition and China.
• It would be prudent to assess post-earnings guidance for future growth trajectory and any shifts in market sentiment regarding AI stock valuations.