Nvidia (NVDA) investors will likely be eyeing macro issues like a tougher financing environment, and capex worries at some hyperscalers when the company releases its Q3 results on Wednesday, BofA Securities said in a note emailed Monday.

Investors will also focus on supply constraints and rising component costs which may hit Nvidia's gross margin, as well as more intense competition with OpenAI adding Broadcom (AVGO) and AMD (AMD) to its supplier list, and Alphabet's (GOOG) Google TPU chip making more inroads, the note said.

In the near-term, Nvidia is "facing the tough task of meeting high (earnings) expectations and high skepticism around AI capex, likely only resolved when broader market volatility (shutdown, interest-rates) subsides," the investment firm said.

BofA noted, however, that Nvidia has already "given the punchline" at the GTC trade show when it disclosed about $500 billion in orders for its Blackwell and Rubin chips for 2025 and 2026 so far, which was 10% to 15% above market expectations.

"We look for management to provide reassurance around demand and supply and believe muted sentiment (stock -10% since GTC order raise) a contrarian positive heading into the print," the note said.

The investment firm raised Nvidia's 2026 EPS estimate to $4.56 from $4.45 and the 2027 EPS estimate to $7.02 from $6.26.

BofA has a buy rating on Nvidia and a $275 price target.

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