Nvidia Corp (NVDA) reported record-breaking third-quarter income and earnings for fiscal 2025, exceeding Wall Avenue expectations on the again of surging demand for synthetic intelligence chips.
Regardless of the sturdy efficiency, shares dipped greater than 2% in after-hours buying and selling, reflecting investor warning over valuation and tempered steering.
The chipmaker posted income of $35.08 billion for the quarter ended October 27, a 94% improve year-on-year and beating analysts’ consensus estimate of $33.28 billion.
Nvidia’s non-GAAP earnings per share got here in at $0.81, surpassing consensus estimates $0.75. Income from the Knowledge Heart section, Nvidia’s key progress driver, reached a file $30.8 billion, up 112% from the identical interval final yr.
Jensen Huang, Nvidia’s founder and CEO, known as the quarter a mirrored image of “AI in full steam” as enterprises undertake Nvidia’s Hopper GPUs and anticipate the launch of its next-generation Blackwell platform.
The tech large has been driving excessive this yr following an explosion of investor curiosity in AI-related companies and companies. That has helped drive the Nasdaq to file heights amid wishful prospects of a return to cheaper borrowing ought to the U.S. Federal Reserve proceed to slash its benchmark charge.
Regardless of sturdy outcomes, Nvidia’s inventory fell 0.76% throughout common buying and selling and dropped one other 2.39% in after-hours, closing at $142.40.
Analysts attributed the decline to profit-taking after Nvidia’s year-long rally, together with cautious reactions to the corporate’s This fall steering.
Nvidia expects income of $37.5 billion for the subsequent quarter, representing a 7% sequential improve and aligning with analyst forecasts.
Nvidia’s gaming section additionally noticed regular progress, reporting $3.3 billion in income, up 14% sequentially and 15% year-on-year. Nevertheless, smaller segments like Automotive and Skilled Visualization, whereas rising, contributed modestly to general income.
Whereas outcomes underscore Nvidia’s dominance within the AI and accelerated computing house, considerations over the corporate’s hovering valuation and provide constraints for its GPUs might weigh on the inventory within the brief time period.
Nvidia will maintain a convention name with analysts later Wednesday to offer additional insights into its outlook.
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