After reporting fiscal third-quarter earnings that topped expectations, Nvidia (NVDA, Financials) shares dipped in extended trading on Wednesday; investors wanted more action from the chip giant.
Nvidia projects sales of $37.5 billion for the fourth quarter of fiscal 2025, plus or minus 2%. Although this advice is below some buy-side projections as high as $41 billion, it exceeds analyst predictions of $37.1 billion.
With sales jumping 94% year-over-year to $35.08 billion, Nvidia posted adjusted profits of $0.81 per share for the quarter ended Oct. 27. While automobile income came in at $449 million, data center revenue came in at $30.8 billion, above projections of $29.14 billion. Revenue from professional visualization climbed 17% annually to $486 million.
Gaming income for the quarter is at $3.3 billion, which is above projections of $3.06 billion and up 15% from the year before. With a 75% adjusted gross margin that matched projections, the business produced $16.79 billion in free cash flow.
For the quarter, analysts had projected profits of $0.74 per share on $33.25 billion in sales.
“The age of AI is in full steam, propelling a global shift to Nvidia computing,” said Jensen Huang, founder and CEO of Nvidia. “Demand for Hopper and anticipation for Blackwell — in full production — are incredible as foundation model makers scale pretraining, post-training, and inference.”
Huang added, “AI is transforming every industry, company, and country. Enterprises are adopting agentic AI to revolutionize workflows. Industrial robotics investments are surging with breakthroughs in physical AI. And countries have awakened to the importance of developing their national AI and infrastructure.”
According to the business, for many quarters into fiscal 2026 demand for their Blackwell chips is projected to surpass supply. Notwithstanding supply limits, Nvidia intends to keep delivering Hopper and Blackwell in the fourth quarter of fiscal 2025.
Analyst Julian Lin noted on the direction that Nvidia lives in the "same mathematical reality."
Following Nvidia's results, shares of rival semiconductor firms, including AMD (AMD, Financials), ARM (ARM, Financials), Taiwan Semiconductor (TSM, Financials), and Intel (INTC, Financials), slumped in after-hours trade.
With a record date of Dec. 5, Nvidia said it would pay a quarterly dividend of $0.01 per share to owners on Dec. 27.
