Nvidia Announces Record Performance - $35.1B Q3 Revenue FY25

Nvidia announces record performance: Nvidia’s Q3 results exceeded high market expectations, achieving $35.1 billion in revenue—a 94% year-over-year surge and a 17% sequential increase—while profits more than doubled to $19.3 billion. With robust demand for AI-driven data center products, Nvidia continues to dominate the AI industry, despite temporary margin pressure and supply challenges for its next-gen Blackwell chips.

Nvidia Announces Record Performance – Key Points

Financial Highlights (Q3 FY25):

Revenue: $35.1 billion, beating analysts’ estimates of $33.16 billion, with a year-over-year growth of 94%.
Net Income: $19.3 billion, up 109% from a year ago.
Earnings Per Share (EPS):
- GAAP EPS: $0.78, up 111% year-over-year.
- Non-GAAP EPS: $0.81, beating expectations of $0.75.
Gross Margins: Slightly dipped to 74.6% from 75.1% in Q2 FY25, defying UBS’s prediction of a sharper decline.

Data Center Leadership:

Revenue: $30.8 billion, exceeding forecasts of ~$28 billion, up 112% year-over-year.
Next-Gen AI Chips:
- Blackwell Chip Demand:
  - Blackwell chips are now in full production, with shipments exceeding expectations.
  - 13,000 units were delivered to major customers, including Microsoft, Oracle, and OpenAI.
  - Nvidia expects several billion dollars in Blackwell revenue in Q4 FY25, though supply constraints may persist into FY26.
- H200 (Hopper) Chips: Continued strong growth supported current-quarter revenue.
Networking Revenue: Contributed $3.1 billion to data center performance, showcasing a diversified approach to AI infrastructure.

Other Business Segments:

Gaming:

Revenue: $3.28 billion, up 15% year-over-year and above analysts’ expectations of $3.03 billion.
Drivers of Growth:
- Increased GPU demand for PCs, laptops, and game consoles.
- Nvidia’s chips power the Nintendo Switch, a key revenue contributor.

Automotive:

Revenue: $449 million, up 72% year-over-year, driven by self-driving car chips and robotics solutions.

Professional Visualization:

Revenue: $486 million, up 17% year-over-year, boosted by increased adoption of Nvidia Omniverse for industrial applications.

Market Sentiment and Stock Performance:

Nvidia shares fell 2% in after-hours trading, reflecting profit-taking amid concerns over growth sustainability.
Nvidia stock has surged nearly 200% in 2024, making it the world’s most valuable publicly traded chipmaker and a prime beneficiary of the AI boom.
Analysts acknowledge Nvidia’s ability to meet and exceed high expectations despite industry skepticism.

Supply Challenges and Margins:

Blackwell chips faced initial concerns over overheating in certain data center configurations. Nvidia clarified that such adjustments were “normal and expected.”
CFO Colette Kress confirmed gross margins may dip slightly in the short term due to the Blackwell rollout but emphasized a return to growth.

Future Outlook:

Q4 FY25 Revenue Guidance: $37.5 billion (±2%), up ~70% year-over-year.
Nvidia remains optimistic about its ability to scale AI-driven solutions across industries, with expectations of continued leadership in data center innovation, gaming, and automotive technologies.

Why This Matters:

Nvidia’s record-breaking quarter solidifies its dominance in the AI sector, leveraging groundbreaking products like Blackwell and H200 chips to fuel growth across data centers, gaming, and automotive markets. Despite supply challenges and temporary margin pressure, Nvidia’s ability to exceed expectations underscores its pivotal role in shaping the future of computing.