Nvidia’s AI Revolution: What’s Next for the Tech Powerhouse?

Nvidia has been one of the hottest stocks in recent years, with its tech driving major innovations in AI, gaming, and data centers. It’s hard to talk about the future of technology without mentioning this company.

With the upcoming earnings report on 20 November, investors are eager to see what’s next... Will Nvidia continue its impressive growth?

In this article, we’ll explore the main factors driving Nvidia’s growth, what to expect from their earnings report, and the risks every investor should consider.

What is Driving Nvidia’s Growth Right Now?

It has been clear that Nvidia’s rapid growth is being fueled by its dominance across several high-demand sectors. The company's GPUs have become the go-to hardware for industries ranging from AI to gaming, which keeps Nvidia at the center of the tech world.

• Artificial Intelligence & Data Centers: Nvidia's GPUs are critical to AI and machine learning applications. Their technology is used in data centers to power complex AI models, from deep learning to advanced cloud computing solutions. In the last earnings, data center revenue accounted for the majority of Nvidia’s growth, signaling how essential their chips are to the future of AI.

• Gaming: Nvidia has long dominated the gaming GPU market, and it continues to maintain a strong foothold. The GeForce RTX series remains highly popular among gamers, with growing demand from the eSports community and virtual reality enthusiasts. Even though AI is grabbing headlines, gaming still plays a major role in the company’s revenue.

• Automotive: Nvidia is also making headway in autonomous driving with its DRIVE platform. Their technology is used in self-driving cars, and while this segment is smaller than AI or gaming, it's expected to grow as more automakers adopt advanced driver-assistance systems (ADAS).

What to Watch in Nvidia’s Upcoming Earnings?

In the upcoming Nvidia earnings report on 20 Nov, investors will be eager to see if the company can maintain its incredible momentum.

The previous earnings report for Q2 FY2025 was a record-setting quarter, with revenue of $30 billion, driven primarily by the data center segment, which saw a 16% sequential and 154% year-over-year growth. The company’s focus on AI-related technologies, especially in data centers and cloud computing, has been a significant driver of its success​.

For the upcoming earnings, Nvidia has already set an outlook for Q3 of around $32.5 billion in revenue, with gross margins expected to remain strong at approximately 74-75%.

A key area of interest for investors will be the company’s transition to the Blackwell architecture, which is expected to ramp up during Q4. This next-generation technology could significantly enhance Nvidia's position in AI and computing markets, and early shipments of Blackwell products are anticipated to contribute billions in revenue.

Investors should also pay attention to the continued growth in sectors such as automotive, robotics, and healthcare, where Nvidia's AI technologies are gaining traction. In particular, automotive revenue saw a 37% year-on-year growth last quarter, and this is likely to continue as more companies adopt Nvidia's AI solutions.

What Are the Risks to Watch Out For?

As exciting as Nvidia's growth has been, it's important to keep in mind that every investment carries risks. While Nvidia has shown incredible leadership in the AI and data center markets, certain factors could affect its future performance.

• Valuation Concerns: Nvidia's stock has surged, and its high price-to-earnings ratio might indicate overvaluation. Investors should be cautious about buying at these high levels in case the stock pulls back.

• Geopolitical Tensions: With a significant portion of its business tied to China, Nvidia is vulnerable to U.S.-China trade disputes or new export controls that could limit its access to key markets.

• AI Boom Dependency: Nvidia's growth heavily relies on the AI sector. A slowdown in AI adoption or increased competition in AI chips could impact future earnings.

• Supply Chain Issues: Semiconductor shortages or global supply disruptions could hinder Nvidia’s ability to meet demand, especially in high-growth sectors like data centers.

• Competitive Pressure: Competitors like AMD and Intel are constantly developing new products to challenge Nvidia’s dominance, which could affect its market share.

• Market Saturation: While demand for Nvidia’s products is high, there is a risk that markets like data centers could reach saturation, slowing growth.

• Prices continue to hold above the 140.00 psychological support, where buyers have continued to show interest as prices dip toward this level.

• 20d MA have rebounded from the 100d MA in September, where prices subsequently reclaimed the 130.00 level, indicating buying interest.

• Both longer term moving averages (100d and 200d) are still pointing up now indicating that longer term strength still intact.

• Upside toward the 150.00 psychological resistance, as long as the 140.00 support level hold, where 160.00 would be the next target if resistance gives way.

Nvidia remains a tech powerhouse at the forefront of AI, gaming, and data center innovations. With its upcoming earnings report on 21 November, all eyes are on whether the company can maintain its impressive growth trajectory. Investors should closely watch how Nvidia navigates challenges such as valuation concerns, geopolitical risks, and increasing competition, while continuing to dominate in high-growth areas like AI and autonomous vehicles.

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Sources:
1.Nvidia (NVDA) Q2 2025 Earnings Call Transcript. Available at: https://www.fool.com/earnings/call-transcripts/2024/08/28/nvidia-nvda-q2-2025-earnings-call-transcript/ 
2. NVIDIA Corp (NVDA) Q2 2025 Earnings Call Transcript Highlights: Record Revenue and Strong Data Center Growth. Available at:https://www.gurufocus.com/news/2512639/nvidia-corp-nvda-q2-2025-earnings-call-transcript-highlights-record-revenue-and-strong-data-center-growth 

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