This evening, after the closing bell at Wall Street, it will finally be NVIDIA’s turn to report its quarterly results, effectively wrapping up this earnings season. Described by a well-known American strategist as “the top company within the top industry within the top sector,” the stock — which has gained 1,400% since September 2022 — is almost certain to move markets.
With such an exceptional performance and so much attention on the name, it is no surprise that its fundamental valuation ratios are “rather” elevated: NVDA trades at a P/E of 51.2×, compared with 29.9× for the S&P 500. Looking at the forward P/E, the picture normalizes slightly — 27.7× versus 22.4× — but these are still high levels. Other valuation metrics look even more stretched: the chipmaker’s P/S is 27.9×, and its P/B stands at 45×; by comparison, Microsoft trades at roughly 13.5× and 14.5×, respectively.
In short, valuations are undoubtedly rich. The question is whether they are justified by future business prospects. For tonight, the consensus expects EPS of $1.23 per share and revenues of $54.6 billion (up 55% year-over-year).
Technical Analysis
NVDA closed yesterday at $181.36 (-2.81%). The options market suggests that dealers expect a potential post-earnings move of roughly 6.2% — this indicates only the magnitude of the expected move, not the direction. In other words, options markets would not be surprised to see either a sharp rally or a drop of around $11 from the close. This implies potential trading levels around $170 on the downside or $192 on the upside, depending on how results are received.
From a more traditional chart-based perspective, NVDA has recently broken the steeper upward trendline that had supported the rally since the post-tariff-crisis rebound in late August 2025, and it has since remained above a much flatter trendline (originating from the August 20 low and confirmed on September 25, October 22, etc.). Since November 3 — from near-record highs at $211.35 — the stock has been clearly bearish, with the current trendline now passing through $186.8. Volumes have been particularly elevated in the last two sessions, which contributed to the current all-time highs.
