Nvidia’s stock has a strong setup ahead of next week’s earnings, this analyst says

Susquehanna analyst Christopher Rolland projects Nvidia (NVDA) is poised for a significant "beat-and-raise" in its upcoming earnings report, driven by disclosed visibility into over $500 billion in revenue through 2025 and the ongoing ramp-up of its Blackwell rack-scale system. The positive outlook is reinforced by an anticipated 69% increase in capital expenditures from major hyperscalers, fueling AI demand, while recent stock underperformance may create a lower execution hurdle for the company.

Analysis

Susquehanna analyst Christopher Rolland anticipates Nvidia (NVDA) is positioned for a significant "beat-and-raise" in its upcoming earnings report, driven by the continued ramp-up of its Blackwell rack-scale system. This positive outlook is further supported by Nvidia's recent disclosure of visibility into over $500 billion in revenue through the end of next year.

The robust demand environment for artificial intelligence is a key catalyst, with major hyperscalers projected to increase their capital expenditures by 69% this year. This substantial spending growth is expected to directly fuel demand for Nvidia's AI infrastructure, underpinning its strong revenue visibility.

Furthermore, the company's recent lagging stock performance may have set a "lower bar for execution" for the upcoming results. This dynamic could amplify positive market reactions should Nvidia meet or exceed the analyst's optimistic projections.

Key Decisions for Investors

• Closely monitor Nvidia's upcoming earnings report for confirmation of the anticipated "beat-and-raise" potential, given the strong analyst conviction and demand signals
• Evaluate the company's guidance and any commentary on hyperscaler spending trends for sustained growth indicators
• Assess the risk/reward profile, considering the potential for positive stock movement against already high market expectations