Nvidia (NVDA) is scheduled to announce its third quarter earnings for fiscal 2025 on Wednesday, November 20. Goldman Sachs managing director Toshiya Hari joins Seana Smith and Madison Mills on Catalysts to share insights on what to expect from this key player in the artificial intelligence (AI) sector. Hari emphasizes two main points as he prepares for the earnings report: the overall demand for Nvidia’s products and the company's ability to excel beyond AI training, particularly in inference, which supports robust and sustainable growth for the chipmaker. “Firstly, in regard to demand, the market remains very strong. Any potential issue lies in supply rather than demand, ” Hari notes. He points out that while major AI customers such as Alphabet (GOOG, GOOGL), Microsoft (MSFT), and Amazon (AMZN) have been Nvidia's largest clients as they expand their AI infrastructure, “the customer base is diversifying beyond these hyperscalers to include enterprises and even sovereign states. There’s demand across the spectrum. " “Secondly, there has been a historical notion that while Nvidia is formidable in training, its competitive edge might weaken as we move towards inference…

[However, ] Nvidia’s growth opportunities might actually enhance the competitive advantage they hold. " Hari believes that Nvidia's capacity “to innovate across various components” on a “12- to 18-month cycle” distinguishes it from other players in the AI industry and cements its leading position. He asserts that it will be extremely challenging and costly for competitors to rival Nvidia directly. Although the market appears optimistic about Nvidia's near-term prospects, Hari mentions “the significant uncertainty” concerning the outlook for the 2026 calendar year, as investors seek to determine whether hyperscalers will continue investing billions in Nvidia’s chips. Even with Nvidia recently reaching a new record high, Hari shares the sentiment of many analysts who believe the stock has further potential for growth. “We anticipate upside from this point” ahead of Nvidia's earnings report, especially as hyperscalers release earnings that could boost the stock’s performance. For more expert insights and updates on the latest market developments, be sure to explore additional Catalysts. This article was composed by Naomi Buchanan.