Welcome to our live coverage of Nvidia’s (NVDA) highly anticipated quarterly results for the third quarter of its fiscal 2025. The chipmaker at the heart of the AI revolution has blown away market expectations in recent quarters, and investors were looking for more of the same Wednesday.
The AI investor favorite once again reported results that handily topped expectations, while projecting continued growth amid robust demand for AI. Nvidia shares, however, were down about 1% in recent after-hours trading as investors may have been looking for even stronger results, with expectations rising in the days ahead of the report.
Stay tuned here for the details from the earnings report, the conference call with executives and the market reaction to what is widely regarded as the most important earnings release of the quarter.
Nvidia Spent $11 Billion on Stock Buybacks in Q3
23 minutes ago
Nvidia said it spent $11 billion on stock buybacks last quarter.
That made up the lion’s share of its spending on shareholder return during the quarter, with Nvidia also issuing a comparatively small dividend.
The company ended the quarter with $38.5 billion in cash, cash equivalents and marketable securities, up from $34.8 billion a quarter earlier.
Networking Revenue Slips from Previous Quarter
25 minutes ago
Though Nvidia’s revenue rose broadly, there were some blemishes. Networking revenue fell from the second quarter, coming in at about $3.1 billion.
“Though networking revenue was sequentially down 15%, networking demand is strong and growing,” CFO Colette Cress said in published comments.
Networking revenue rose 20% year-over-year, the company said.
Blackwell Shipments to Start in Q4 Amid Tight Supply
28 minutes ago
Nvidia said that shipments of its Blackwell system, which includes highly anticipated AI chips, are expected to begin in the fourth quarter of the current fiscal year, according to published comments from CFO Colette Kress.
“We will be shipping both Hopper and Blackwell systems in the fourth quarter of fiscal 2025 and beyond,” Cress wrote. “Both Hopper and Blackwell systems have certain supply constraints, and the demand for Blackwell is expected to exceed supply for several quarters in fiscal 2026.”
Reports detailing some issues with the Blackwell technology weighed on Nvidia’s shares earlier this week.
Data Center Revenue Hits Fresh High, Topping Estimates
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Nvidia’s data center sales hit a fresh high of $30.8 billion in the third quarter, surpassing analysts’ expectations, as many of its Big Tech buyers, including Meta (META), Amazon (AMZN) and Google parent Alphabet (GOOGL), boosted spending on AI infrastructure.
“The age of AI is in full steam, propelling a global shift to Nvidia computing,” CEO Jensen Huang said in a press release.
Chip Somodevilla / Staff / Getty Images
Microsoft (MSFT), another buyer of Nvidia’s chips, said in its earnings call last month that it’s seeing more demand for AI than it can keep up with, despite its higher spending to raise capacity. The tech giant also said it plans to invest more in AI, which could benefit Nvidia.
Earlier this year, Goldman Sachs analysts projected big tech companies could spend upwards of $1 trillion on artificial intelligence over the next five years.
Revenue Outlook for Q4 Slightly Above Market Expectations
47 minutes ago
Nvidia told investors to expect $37.5 billion in fourth-quarter revenue, plus or minus 2%. Wall Street was looking for $36.9 billion, according to Visible Alpha estimates.
The company guided investors toward gross margins of 73% to 73.5%, give or take half a percentage point. In the third quarter, gross margins rose year-over-year but ticked lower from the second quarter, settling just below 75%.
Nvidia Beats Analysts’ Estimates on Revenue, Profit
51 minutes ago
Nvidia’s quarterly results topped Wall Street expectations on both the top and bottom lines.
Revenue nearly doubled year-over-year to $35.08 billion, above that average estimate of $33.29 billion, according to Visible Alpha. Net income at $19.31 billion more than doubled from the year-ago period, topping projections of $17.47 billion.
Nvidia Shares Slip Heading Into the Earnings Report
59 minutes ago
Nvidia shares, which were coming off a 5% gain yesterday, closed Wednesday’s session down 0.8% The stock has nearly tripled since the start of the year.
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What is the Market Looking for in the Earnings Report?
1 hr 20 min ago
Nvidia, the world’s most valuable company by market capitalization, is projected to report significant revenue growth driven by demand for AI infrastructure.
Wall Street analysts expect the chipmaker’s revenue to grow 84% year-over-year to $33.29 billion and net income to jump to $17.47 billion or 70 cents per share, up from $9.24 billion or 37 cents per share a year earlier, according to Visible Alpha.
Nvidia’s data center revenue hit a record $26.3 billion in the second quarter, and analysts are calling for it to climb to a fresh high of $29.28 billion in the third quarter. In August, CEO Jensen Huang said, “global data centers are in full throttle to modernize the entire computing stack with accelerated computing and generative AI.”
Investors will also be watching for updates on shipments of Nvidia’s Blackwell AI chip, which Huang has called “a complete game changer for the industry.”
However, Morgan Stanley analysts warned supply constraints could limit the upside of Nvidia’s near-term outlook, adding “we think the bigger upward revisions happen later in the year.” Nvidia has said it expects to ship several billion dollars worth of Blackwell revenue during the January quarter as production ramps up.
What Wall Street Analysts Think of Nvidia Ahead of Earnings
1 hr 44 min ago
Analysts are overwhelmingly bullish on Nvidia heading into Wednesday’s quarterly earnings report.
Of the 23 analysts covering Nvidia tracked by Visible Alpha, 22 have a “buy” rating for the stock, with one “hold” rating. Their consensus price target of $170 represents upside of about 17% compared to the current price.
Several firms raised their price targets in the days ahead of the report, with Stifel analysts bumping their price target earlier this week to $180 from $165. Last week, Mizuho lifted its price target to $165 from $140.
Projections for Nvidia’s results have also ticked higher, with analysts now expecting third-quarter revenue to grow 84% year-over-year to $33.29 billion, driven by record sales from Nvidia’s data center segment.
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The stock, which has nearly tripled since the start of the year, was down 1.4% at $145 about half an hour before the closing bell.
