Nvidia (NVDA) is set to report third quarter earnings for the fiscal 2025 on Wednesday, November 20. Goldman Sachs managing director Toshiya Hari joins Seana Smith and Madison Mills on Catalysts to discuss what to expect from the key artificial intelligence (AI) player.
The analyst highlights two things that he’s keeping in mind heading into the earnings results: the demand environment around Nvidia’s products and Nvidia’s strength beyond AI training in inferencing that support the chipmaker’s growth is strong and sustainable.
“First, in terms of the demand profile out there, the environment continues to be very robust. If there is a problem, it’s a supply problem, not a demand problem.” Hari notes that while hyperscalers like Alphabet (GOOG, GOOGL), Microsoft (MSFT), and Amazon (AMZN) have been Nvidia’s biggest AI customers as they build out AI infrastructure, “the customer profile is broadening beyond the hyperscalers into enterprises and also sovereign states. So there is demand across the board there.”
“Secondly, I think there’s been this perception historically that Nvidia is very strong in training, yet their competitive position could potentially dilute as we transition to inference… [However] Nvidia’s growth opportunity set and potentially expand the competitive moat that they have.”
The analyst says that Nvidia’s ability “to really innovate across multiple components” at “a 12- [to] 18-month cadence” has set it apart from others in the AI space and secured its dominant position. “I think it’s going to be very difficult, very challenging, and expensive for others to compete head-to-head with Nvidia.”
While the market seems bullish on Nvidia in the near future, Hari says “the big question mark” is the outlook for the 2026 calendar year as investors try to gauge if hyperscalers will continue to spend billions on Nvidia’s chips.
Despite Nvidia recently setting a fresh record high, Hari is among analysts who think the stock has more to run. “We do expect upside from here” ahead of Nvidia’s report as hyperscalers announce earnings that could send the stock higher.
