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Nvidia stock continues to exhibit strong momentum as it heads toward its Q3 earnings report on November 19. The stock has shown resilience, gaining nearly 300% from $46 in early 2023 to $188. As investors anticipate the upcoming earnings, questions arise about the stock’s potential to reach a $250 record high.

Nvidia’s Surge Amid Valuation Compression

Recent analysis from TrendSpider highlights that Nvidia stock is sending bullish signals for investors. Despite a 10% drop to $188 in the past week, the stock remains well above its starting point. TrendSpider pointed out that this recent pullback could set the stage for a major rebound as the company’s earnings growth outpaces stock price appreciation.

The biggest green flag for any stock:

Price goes vertical while valuations compress.

The real bull market is built on moves like this.$NVDA NVIDIA pic.twitter.com/iflnghSQDc

— TrendSpider (@TrendSpider) November 9, 2025

The stock has been on a rapid climb over the past year, driven by strong earnings reports and market optimism. However, as the stock price has surged, Nvidia’s valuation multiple has dropped, from 158x to 50x earnings. This suggests that Nvidia’s earnings growth is fueling the rally, rather than speculative excess.

Q3 Earnings Expected to Boost Nvidia Stock

For Q3, Nvidia expects a 54% year-over-year increase in revenue, with a forecast of $54 billion. Analysts predict adjusted earnings per share (EPS) of $1.25, up from $0.81 in the same period last year. Gross margins are expected to be around 73%, signaling strong profitability.

The market is focused on Nvidia’s ability to meet these expectations, particularly in a competitive landscape. As Nvidia leads the artificial intelligence (AI) space, its growth continues to attract attention. Investors will look for confirmation that Nvidia’s momentum remains intact during the upcoming earnings call.

Despite the optimism, some market participants remain cautious about Nvidia’s valuation. Contrarian investor Michael Burry has placed bearish bets against the stock, including put options on 1 million Nvidia shares. Burry’s position reflects concerns that Nvidia stock may be overvalued, especially as the AI sector faces growing scrutiny.

The market’s reaction to the upcoming earnings report will likely determine whether Nvidia stock breaks through the $200 mark or faces further volatility. As the stock approaches its $250 record high, investors remain divided on its future trajectory.

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