When Nvidia Corp. (NVDA) reports third-quarter earnings Wednesday after the bell, it won't just be another tech earnings report. It'll be a referendum on artificial intelligence spending, a stress test for the company's remarkable winning streak, and potentially a catalyst that moves the entire stock market.

The semiconductor giant has become the ultimate bellwether for both the tech sector and broader market sentiment around AI. With CEO Jensen Huang's track record of consistently exceeding expectations, the question isn't whether Nvidia will beat estimates, but whether it can deliver its 12th consecutive double beat while maintaining the momentum that's made it one of the world's most valuable companies.

The Numbers Everyone's Watching

Wall Street analysts are expecting Nvidia to post third-quarter revenue of $54.84 billion, according to data from Benzinga Pro. That's a massive leap from the $35.08 billion the company reported in last year's third quarter. If Nvidia hits this target, it would mark yet another record, surpassing the $46.74 billion the company posted in the second quarter.

On the earnings side, analysts predict $1.25 per share, up from 81 cents per share in the year-ago quarter. The company's own guidance projected revenue between $52.92 billion and $55.08 billion, so expectations sit comfortably within that range.

Here's what makes this quarter particularly interesting: Nvidia has beaten analyst revenue estimates for 12 straight quarters and earnings estimates for 11 consecutive quarters. That's an extraordinary run by any measure, but it also creates sky-high expectations that become increasingly difficult to exceed.

What The Smart Money Is Saying

Bank of America analyst Vivek Arya captured the current environment perfectly, describing it as "solid micro, choppy macro." He maintains a Buy rating with a $275 price target, but acknowledges the challenge ahead.

"NVDA near-term is facing the tough task of meeting high expectations and high skepticism around AI capex, likely only resolved with broader market volatility subsides," Arya noted. Translation: the fundamentals look good, but the macro environment is creating doubt that probably won't clear until markets calm down.

Wedbush's Dan Ives, never one for understatement, framed the earnings report as a pivotal moment for AI sentiment. "Street awaits Godfather of AI Jensen and Nvidia's earnings," Ives wrote, maintaining an Outperform rating with a $210 price target.

Ives expects Nvidia to beat Street estimates and believes the conference call could showcase "robust demand" for the company's next-generation Blackwell chips. He's particularly bullish on the long-term outlook: "We continue to believe Street estimates for Nvidia are being significantly underestimated over the next few years, given the global demand story for the AI Revolution is still in the Top of the third inning in our view."

According to Ives, Nvidia's earnings and guidance could serve as a "positive catalyst" for the entire tech sector heading into year-end.

JPMorgan's Harlan Sur also predicts another beat-and-raise quarter, reiterating an Overweight rating with a $215 price target. But Sur shifts the focus from demand to supply: "The key debates are less about the health of the demand environment and more about the ability of NVDA's sprawling supply chain and its broader supporting infrastructure to keep pace with customers' AI compute capacity rollout ambitions."

In other words, the question isn't whether customers want Nvidia's chips (they do), but whether the company can manufacture and deliver them fast enough. Despite this concern, Sur anticipates "significant upside in shares."

Why This Matters For The Entire Market

Freedom Capital Markets Chief Market Strategist Jay Woods put it bluntly: "Saying this is the most important stock in the world is an understatement."

The numbers back him up. Nvidia historically moves an average of plus or minus 7.4% following earnings releases. Given the company's massive size and index weightings, that kind of move doesn't just affect Nvidia shareholders—it ripples through the entire market.

Consider Nvidia's dominance in major indices: it's the top holding in the SPDR S&P 500 ETF Trust (SPY) at 8.07% of assets, tracking the S&P 500 Index. It also commands the largest position in the Invesco QQQ Trust (QQQ) at 9.93% of assets, which tracks the Nasdaq 100.

Nvidia is even a member of the Dow Jones Industrial Average, though the price-weighted methodology of that index keeps it at a more modest 20th-largest holding in the SPDR Dow Jones Industrial Average ETF Trust (DIA) at 2.48% of assets. Despite being one of the world's largest companies by market cap, the Dow's unique structure limits its weighting.

Beyond the broad market indices, Nvidia sits at the top of countless semiconductor and tech-focused ETFs, meaning volatility in the stock this week could create significant swings across specialized funds.

The Plot Twists To Watch

While the headline numbers and data center commentary will dominate attention, several other storylines deserve monitoring.

China remains a wildcard. Nvidia faces export restrictions limiting sales to Chinese customers, and current expectations may not fully account for potential demand if those restrictions ease. Any commentary about the regulatory environment or China market dynamics could move the stock.

Gaming, often overlooked given Nvidia's AI dominance, posted 14% year-over-year growth in the second quarter. While this segment has taken a backseat to data centers in recent years, investors might be underestimating its contribution.

The automotive segment has also delivered strong growth in recent quarters and could provide positive surprises beyond the data center narrative that dominates most analysis.

Nvidia stands as one of the rare companies holding membership in the Magnificent Seven, the S&P 500, and the Dow Jones Industrial Average simultaneously. Whatever happens Wednesday evening, the impact will be felt market-wide.

NVDA Price Action: Nvidia shares traded down 2.11% to $186.17 on Monday, within a 52-week range of $86.63 to $212.19. The stock has gained 34.8% year-to-date in 2025.