Nvidia Surpasses Q3 Expectations, Stock Slips in After-Hours Trading
- Nvidia reported Q3 revenue of $35.08 billion, a 94% year-over-year increase, surpassing the $33.28 billion analyst estimate.
- The Data Center segment achieved a record $30.8 billion in revenue, up 112% year-on-year.
Nvidia Corporation (NVDA) delivered stellar third-quarter results for fiscal 2025, surpassing Wall Street projections with record-breaking revenue and earnings. Despite the robust performance, its stock dipped 0.76% during regular trading and dropped a further 2.39% in after-hours, closing at $142.40.
The chipmaker reported $35.08 billion in revenue for the quarter ending October 27, a 94% increase year-over-year, exceeding analysts’ consensus estimate of $33.28 billion. Non-GAAP earnings per share reached $0.81, topping the forecasted $0.75. Nvidia’s Data Center segment, its primary growth engine, posted record revenue of $30.8 billion, marking a 112% year-over-year surge.
Jensen Huang, Nvidia’s founder and CEO, attributed the record quarter to the widespread adoption of its AI chips.
“This quarter is a reflection of AI in full steam,” said Huang, highlighting the uptake of Hopper GPUs and anticipation for the upcoming Blackwell platform.
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The company has been a significant driver of Nasdaq’s gains this year, fueled by an investor rush into AI-related businesses. However, Nvidia’s valuation and cautious Q4 guidance appeared to weigh on investor sentiment. The company forecasts $37.5 billion in revenue for Q4, a 7% sequential increase, aligning with market expectations.
Nvidia’s gaming segment contributed $3.3 billion in revenue, growing 14% sequentially and 15% year-on-year. Smaller divisions like Automotive and Professional Visualization also posted gains but accounted for a minor share of overall revenue.
While Nvidia continues to dominate the AI and accelerated computing markets, concerns over its steep valuation and supply chain constraints may pose challenges in the short term.
Edited by Harshajit Sarmah
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