Nvidia Beats Q3 Expectations, Stock Dips 2% After Hours

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November 21, 2024 2:04 PM

In Brief:
Nvidia reported a record $35.08 billion in Q3 revenue, a 94% year-on-year increase, surpassing Wall Street expectations.
Despite strong results, Nvidia's stock fell 2.39% in after-hours trading due to profit-taking and cautious Q4 guidance.

Nvidia Exceeds Analyst Expectations in Q3, Stock Dips 2% in After-Hours Trading

Nvidia Corp (NVDA) delivered record-breaking third-quarter results for fiscal 2025, reporting $35.08 billion in revenue, a 94% increase year-on-year. The results surpassed Wall Street’s consensus estimate of $33.28 billion, driven by surging demand for artificial intelligence (AI) chips.

AI Demand Powers Nvidia's Growth

Nvidia’s Data Center segment, its primary growth driver, generated $30.8 billion in revenue, up 112% compared to the same period last year. The company’s non-GAAP earnings-per-share (EPS) reached $0.81, exceeding analyst expectations of $0.75. CEO Jensen Huang described the quarter as a reflection of “AI in full steam,” with enterprises adopting Nvidia’s Hopper GPUs while anticipating the launch of its next-generation Blackwell platform.

Stock Declines Despite Strong Earnings

Despite Nvidia’s strong performance, its stock fell 0.76% during regular trading and dropped an additional 2.39% in after-hours trading, closing at $142.40. Analysts attributed the decline to profit-taking after Nvidia’s year-long rally and cautious reactions to its Q4 guidance. Nvidia expects $37.5 billion in revenue for the next quarter, representing a 7% sequential increase and aligning with analyst forecasts.

Gaming and Smaller Segments See Modest Growth

Nvidia’s gaming segment reported $3.3 billion in revenue, reflecting steady growth with a 14% sequential and 15% year-on-year increase. However, smaller segments like Automotive and Professional Visualization contributed modestly to the overall revenue.

Concerns over Nvidia’s soaring valuation and potential supply constraints for GPUs remain, even as the company continues to dominate the AI and accelerated computing space.

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