Artificial-intelligence chipmaker Nvidia, though delivered good results yet failed to beat the market expectations. A major contributor to the benchmark S&P 500 gains this year, the stock of Nvidia, the world's most valuable company, reached a record high before retreating in the subsequent sessions.
Nvidia (NASDAQ: NVDA)
On 22 November 2024, NVIDIA reported impressive financial results for the third quarter of fiscal 2025, posting a record revenue of $35.1 billion, which marks a 17% increase from the previous quarter and 94% jump from the same period last year. A significant contributor to this success was the company's Data Center division, which brought in $30.8 billion, a 17% rise from Q2 and a 112% increase from the previous year. The company also saw strong growth in earnings per share (EPS), with GAAP EPS rising by 16% from the previous quarter and 111% from the same quarter last year. Non-GAAP EPS showed an even greater increase, up 19% from Q2 and 103% from a year ago. This solid performance reflects the company’s dominant position in the rapidly growing AI market, where demand for its technologies is surging globally.
The company’s outlook for Q4 of fiscal 2025 is similarly optimistic, with projected revenue expected to reach $37.5 billion, plus or minus 2%. It anticipates strong gross margins, with a slight variation between GAAP and non-GAAP figures. Operating expenses are expected to remain steady, while other income and taxes are also projected to stay within a narrow range. The company has been focusing on expanding its leadership in AI-driven infrastructure, and this is reflected in the strong demand for its accelerated computing technologies across multiple industries, including telecommunications, automotive, robotics, and professional visualization.
In the third quarter, the company made significant strides in its AI and data center initiatives. It launched the NVIDIA Hopper H200-powered instances with cloud partners such as AWS, CoreWeave, and Microsoft Azure. The company also celebrated milestones in international collaborations, including Denmark's largest sovereign AI supercomputer, powered by 1,528 NVIDIA GPUs. Additionally, partnerships with companies like SoftBank, Foxconn, and leading telecom providers like T-Mobile and Ericsson showcase its role in building next-generation AI infrastructure worldwide. These innovations extend into various industries, with cloud computing leaders in India, Japan, and Indonesia leveraging NVIDIA’s technologies to expand AI adoption.
The company’s gaming division also performed well, generating $3.3 billion in revenue, marking a 14% rise from Q2 and 15% from a year ago. This growth was bolstered by the 25th anniversary of its GeForce GPU, which paved the way for AI-driven gaming experiences. New AI-powered PCs and digital human technologies are expected to drive further growth in this area. Meanwhile, the automotive segment scored 30% more than the previous quarter, which signalled the increasing level of demand for AI in electric vehicles and robotics. Innovations at the company level on AI-driven simulation and robotics are helping build the next generation of autonomous systems, driving further the company into the lead in the AI-driven industrial revolution.
Source: Company’s Report
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