NVIDIA’s Q3 Was Huge. The Market’s Reaction? Complicated.

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NVIDIA Corporation (Ticker: NVDA) stepped into Q3 earnings like a heavyweight headliner—and the results absolutely delivered. Revenue smashed expectations, data-center demand surged again, and guidance reaffirmed NVIDIA’s dominance at the core of global AI infrastructure.

But despite the blowout print, the stock’s post-earnings churn sent a message of its own: NVDA may be strong—but expectations are even stronger.

That tension is now the center of the trading setup as the AI cycle pushes into 2026.

A Full-Stack AI Engine Still Running Hot

NVIDIA’s business continues to span far more than graphics processing units (GPUs). Its ecosystem now includes full-stack accelerated computing, Compute Unified Device Architecture (CUDA) software, data-center hardware, digital twins, robotics platforms, networking, and a fast-expanding footprint in sovereign AI infrastructure. Add in big-name customer wins and long-term AI spending estimates in the multi-trillion-dollar range, and NVDA remains one of the most consequential companies in global markets.

Below is a daily chart of NVDA as of November 20, 2025.

Source: TradingView.com

Candlestick charts display the high and low (the stick) and the open and close price (the body) of a security for a specific period. If the body is filled, it means the close was lower than the open. If the body is empty, it means the close was higher than the open.

The performance data quoted represents past performance. Past performance does not guarantee future results.

Here’s how the post-earnings landscape looks now.

Where Bulls Are Looking for Upside

• Q3 Results Confirmed the Momentum - Revenue and guidance beat expectations again, with data-center demand described as “off the charts,” per Yahoo Finance. Even outlets noting the choppy price action acknowledged that fundamentals remain overwhelmingly strong.

• New AI Buyers Are Expanding the Base - Post-earnings coverage highlighted new mega-scale customers including xAI, which plans to build NVIDIA-powered supercomputing facilities in Saudi Arabia, per CNBC. This signals that AI demand is widening well beyond U.S. hyperscalers.

• The Multi-Trillion-Dollar AI Buildout Is Still in Play - NVIDIA reiterated that global AI infrastructure spending could approach $3–4 trillion annually over the next decade. As Wired noted, NVIDIA is increasingly the backbone of the AI economy, not just another chipmaker.

Traders expecting upside may look to Direxion's Daily NVDA Bull 2X Shares (Ticker: NVDU), which seeks daily investment results, before fees and expenses, of 200% of the performance of the common shares of NVIDIA Corporation.

Where the NVDA Trade Could Break Down

• “Priced for Perfection” Means No Room for Error - Even strong numbers struggled to push shares meaningfully higher—an indication that investors may already be assuming nearly flawless execution.

• Geopolitics + Inventory Cycles = Macro Headwinds - Coverage from The Guardian emphasized ongoing risks tied to export restrictions, hyperscaler digestion cycles, and the debate around whether enterprise AI spending is delivering the expected ROI. None of these disrupt the long-term thesis—but all matter for short-term flows.

• Big Tech Is Still Building Its Own Chips - AWS, Google Cloud, and Microsoft continue developing competing accelerators. Recent news of Google's "TPUs" (tensor processing units) in particular have weighed heavily on NVDA. No one is replacing NVIDIA in the near term, but the long-term narrative still creates pressure on sentiment.

Bearish traders may look to Direxion's Daily NVDA Bear 1X Shares (Ticker: NVDD), which seeks daily investment results, before fees and expenses, of 100% of the opposite of the performance of the common shares of NVIDIA Corporation.

Bottom Line for NVDA Traders

NVIDIA’s Q3 earnings reinforced everything bulls wanted to see: massive demand, real customers, and a decade-long AI upgrade cycle that’s only accelerating.

But with NVDA priced like a heavyweight champion, great numbers don’t guarantee easy upside. Post-earnings volatility showed how sensitive the stock is to narrative pressure, macro risks, and sky-high expectations.

The setup? Both sides have real catalysts—and the next big move could be sharp.

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Daily Correlation Risk – A number of factors may affect the Bull Fund’s ability to achieve a high degree of correlation with NVDA and therefore achieve its daily leveraged investment objective. The Bull Fund’s exposure to NVDA is impacted by NVDA’s movement. Because of this, it is unlikely that the Bull Fund will be perfectly exposed to NVDA at the end of each day. The possibility of the Bull Fund being materially over- or under-exposed to NVDA increases on days when NVDA is volatile near the close of the trading day.

Daily Inverse Correlation Risk – A number of factors may affect the Bear Fund’s ability to achieve a high degree of inverse correlation with NVDA and therefore achieve its daily inverse investment objective. The Bear Fund’s exposure to NVDA is impacted by NVDA’s movement. Because of this, it is unlikely that the Bear Fund will be perfectly exposed to NVDA at the end of each day. The possibility of the Bear Fund being materially over- or under-exposed to NVDA increases on days when NVDA is volatile near the close of the trading day.

NVIDIA Corporation Investing Risk — NVIDIA Corporation faces risks associated with meeting the evolving needs of its large markets – gaming, data center, professional visualization and automotive – and identifying new products, services and technologies; competition in its current and target markets; changes in customer demand; supply chain issues; manufacturing delays; potential significant mismatches between supply and demand giving rise to product shortages or excessive inventory; the dependence on third-parties and their technology to manufacture, assemble, test, package or design its products which reduces control over product quantity and quality, manufacturing yields, development, enhancement and product delivery schedules; significant product defects; international operations, including adverse economic conditions; impacts from climate change, including water and energy availability; business investment and acquisitions; system security and data protection breaches, including cyberattacks; business disruptions; a limited number of customers; the ability to attract, retain and motivate executives and key employees; the proper function of its business processes and information systems; its intellectual property; and other regulatory and legal issues.

Semiconductor Industry Risk – Semiconductor companies may face intense competition, both domestically and internationally, may have limited product lines, markets, financial resources or personnel and may face risks related to the availability of materials.

Information Technology Sector Risk — The value of stocks of information technology companies and companies that rely heavily on technology is particularly vulnerable to rapid changes in technology product cycles, rapid product obsolescence, government regulation, and competition, both domestically and internationally, including competition from competitors with lower production cost.

Additional risks of each Fund include Effects of Compounding and Market Volatility Risk, Derivatives Risk, Counterparty Risk, Rebalancing Risk, Intra-Day Investment Risk, Industry Concentration Risk, Market Risk, Indirect Investment Risk, and Cash Transaction Risk. Additionally, for the Direxion Daily NVDA Bear 1X Shares, Shorting or Inverse Risk. Please see the summary and full prospectuses for a more complete description of these and other risks of a Fund.

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