Nvidia Beats Q3 Expectations, Stock Dips 2% After Hours

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.

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

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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.

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AI Demand Powers Nvidia's Growth

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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.

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Stock Declines Despite Strong Earnings

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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.

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Gaming and Smaller Segments See Modest Growth

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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.

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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.