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NVIDIA Corp (NVDA) Q3 2025 Earnings Call Highlights: Record Revenue and Strong AI Demand Propel ...

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4 min read

In This Article:

  • Revenue: $35.1 billion, up 17% sequentially and 94% year on year.

  • Data Center Revenue: $30.8 billion, up 17% sequentially and 112% year on year.

  • Gaming Revenue: $3.3 billion, increased 14% sequentially and 15% year on year.

  • Pro-Vis Revenue: $486 million, up 7% sequentially and 17% year on year.

  • Automotive Revenue: $449 million, up 30% sequentially and 72% year on year.

  • GAAP Gross Margin: 74.6%.

  • Non-GAAP Gross Margin: 75%.

  • Shareholder Returns: $11.2 billion in share repurchases and cash dividends.

  • Q4 Revenue Outlook: Expected to be $37.5 billion plus or minus 2%.

  • Q4 GAAP Gross Margin Outlook: Expected to be 73% plus or minus 50 basis points.

  • Q4 Non-GAAP Gross Margin Outlook: Expected to be 73.5% plus or minus 50 basis points.

  • Q4 GAAP Operating Expenses: Expected to be approximately $4.8 billion.

  • Q4 Non-GAAP Operating Expenses: Expected to be approximately $3.4 billion.

  • Q4 GAAP and Non-GAAP Tax Rates: Expected to be 16.5% plus or minus 1%.

Release Date: November 20, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • NVIDIA Corp (NASDAQ:NVDA) reported record revenue of $35.1 billion for Q3, up 17% sequentially and 94% year-on-year, surpassing their outlook of $32.5 billion.

  • Data center revenue reached a record $30.8 billion, with a 17% sequential increase and 112% year-on-year growth, driven by strong demand for NVIDIA Hopper and H200 products.

  • NVIDIA's AI enterprise revenue is expected to more than double from last year, with a growing pipeline and annualizing software service and support revenue at $1.5 billion, projected to exceed $2 billion by year-end.

  • The company is experiencing significant demand for its new Blackwell GPUs, with plans to exceed previous revenue estimates and ramp up supply to meet customer needs.

  • NVIDIA's gaming revenue increased by 14% sequentially and 15% year-on-year, supported by strong back-to-school sales and healthy channel inventory.

Negative Points

  • NVIDIA Corp (NASDAQ:NVDA) faces supply constraints in gaming, which are expected to impact Q4 revenue despite strong sell-through in Q3.

  • Gross margins are expected to moderate to the low 70s as Blackwell ramps up, with initial configurations potentially impacting profitability.

  • Networking revenue was sequentially down, despite strong year-on-year growth, indicating potential challenges in meeting demand for networking components.

  • The company anticipates competitive market conditions in China due to export controls, which could affect future data center revenue from the region.

  • There are concerns about potential digestion phases in hardware deployment cycles, which could impact growth as the market adjusts to new technologies.

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