Nvidia profits: is investing in AI sustainable?

Investor concerns about the sustainability of current rates of AI infrastructure capital expenditure (capex) are the backdrop against which Nvidia releases its earnings this week

This week, Nvidia, the largest company in the world by market capitalization, will release its Q3 earnings.

The big tech earnings season culminates with Nvidia's earnings release, which typically occurs about a month after the rest of the Magnificent Seven group.

For years, Nvidia (NASDAQ:NVDA) has been one of the most well-liked stocks among do-it-yourself investors and their professional counterparts. This has been especially true since ChatGPT's public launch in November 2022, which raised awareness of artificial intelligence (AI) in the stock market.

During that period, Nvidia's net income from October 2022 to July 2025 showed a 3,785 percent increase in quarterly earnings. Nvidia is now the first £5 trillion company in the world thanks to a more than 13-fold increase in its market capitalization.

The share price of NVIDIA is under unusual pressure as of this release. The company has been sold off by prominent investors in recent weeks due to investor concerns that the AI bubble might burst.

On November 11, Nvidia's stock dropped 3% after it was announced that SoftBank, a major Japanese investment firm, had sold all of its shares in the chipmaker for £5.8 billion. On November 17, it was revealed that Peter Thiel, the co-founder of Palantir and PayPal, and his hedge fund, Thiel Macro LLC, had also sold its interest in Nvidia.

Nvidia "is facing the tough task of meeting high (earnings) expectations and high scepticism around AI capex, likely only resolved when broader market volatility (shutdown, interest rates) subsides," according to a research note from Bank of America analysts led by Vivek Arya.

As of November 14, the price of Nvidia's shares has increased by 30% over the previous 12 months and 41.6% so far in 2025.

When will Nvidia's Q3 results be released?

On November 19, following the close of US markets, Nvidia releases its quarter-end results for October 26, 2025. Although Nvidia stated in the press release confirming the date of the earnings release that the results will be announced at roughly 1.20pm PT (9.20pm GMT), that could happen any time after 9pm GMT.

At 2 p.m. PT (10 p.m. GMT), Nvidia management will address the quarter's highlights and field questions from analysts during the earnings call.

It should be noted that, despite closely matching Q3 of the 2025 calendar year, these results will cover Q3 of NVIDIA's 2026 fiscal year according to the company's financial calendar.

What do analysts anticipate from the Q3 results of NVIDIA?

According to analysts surveyed by the London Stock Exchange Group, Nvidia's Q3 earnings per share (EPS) on revenue of £54.8 billion are expected to be £1.25.

If those figures are correct, they show 54% and 56% year-over-year increases, respectively.

Nvidia predicted £54 billion in total revenue for the most recent quarter (plus or minus 2 percent, or £52.9-55.08 billion).

Dan Ives, Wedbush Securities' head of global technology research, is optimistic about Nvidia's role in the AI revolution.

He stated that "investors continue to underestimate the scale and scope of AI spend" and added, "We believe Nvidia's earnings this week will be another major validation moment for the AI revolution and be a positive catalyst for tech stocks into year-end."

In light of investor worries about the longevity of AI capital expenditures, Arya and his colleagues at Bank of America hope that Nvidia's management can "provide reassurance around demand and supply."

Bank of America's price target for Nvidias shares is £275, which implies gains of 44.6% from the close on November 14. Wedbush has set a price target of £210, which suggests gains of 10%.

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