10:40 AM EST, 11/14/2025 (MT Newswires) -- Nvidia's ( NVDA ) fiscal third-quarter results will likely exceed Wall Street's estimates, reflecting robust artificial intelligence-linked capital spending by hyperscalers, Wedbush Securities said in a Friday client note.

The chipmaking giant, which will release its quarterly results next Wednesday, is expected to guide its fourth quarter above the Street's projections given sustained momentum, the brokerage said.

Nvidia ( NVDA ) and other tech stocks tied to AI have come under pressure of late amid concerns about lofty valuations. Nvidia ( NVDA ) shares were on course on Friday for their second consecutive weekly fall, but they are still up about 38% so far this year.

"We expect (Nvidia ( NVDA )) will again exceed estimates and guide better than Street given only positive data points through (the calendar third quarter) and into (the fourth quarter)," Wedbush analyst Matt Bryson wrote. "The question in our view is rather the exact magnitude of upside given (Nvidia ( NVDA )) seems to have grown beyond the beat by ($2 billion), guide ($2 billion) higher cadence that had typified results through (fiscal 2025 and 2026)."

Hyperscale capital spending in the third quarter remained solid and even outpaced expectations, according to Bryson. Major hyperscalers in particular anticipate a sustained spending surge to support their AI initiatives.

"We continue to believe growth in hyperscale spend is largely going to build out AI capabilities and in particular ends up flowing to (Nvidia ( NVDA )) which supplies a disproportionate amount of the AI server value," the analyst said.

Trends for Nvidia's ( NVDA ) Blackwell chips suggest demand strength remaining strong into 2026 amid increasing requirements for components tied to rack builds, Bryson said.

"This feedback fits with positive recent commentary from Taiwanese (original design manufacturers) during recent earnings calls," he said. "Similarly solid forecasts from (original equipment manufacturers) also support growing demand for (Nvidia ( NVDA )) AI solutions."

Wedbush reiterated its outperform rating on the stock and a price target of $210.

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