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NVIDIA's Q3 FY25 Earnings Report: Revenue Surges Past $35 Billion, Setting a New Record

Tech 2024-12-11 21:48:21 Source: Network
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NVIDIA's Q3 FY25 Earnings Report: Revenue Surges Past $35 Billion, Setting a New RecordNVIDIA announced its financial results for the third quarter of fiscal year 2025 (ended October 27, 2024) on November 21st, delivering astonishing results that redefined expectations for tech giants. The report revealed a staggering $35

NVIDIA's Q3 FY25 Earnings Report: Revenue Surges Past $35 Billion, Setting a New Record

NVIDIA announced its financial results for the third quarter of fiscal year 2025 (ended October 27, 2024) on November 21st, delivering astonishing results that redefined expectations for tech giants. The report revealed a staggering $35.1 billion in revenue (approximately RMB 254.077 billion), a 17% sequential increase and a remarkable 94% year-over-year growth, setting a new company record. This significant growth underscores NVIDIA's dominant position in the global tech market and its advantageous position in the burgeoning AI wave.

NVIDIA

The impressive revenue growth was matched by equally strong profitability. Net income reached $19.309 billion, representing a 16% sequential increase and a 109% year-over-year jump, further demonstrating its robust profitability and market competitiveness. Gross margin also improved to 74.6%, up 0.6 percentage points quarter-over-quarter, highlighting NVIDIA's success in cost control and pricing strategies.

On a per-share basis, NVIDIA reported GAAP diluted earnings per share of $0.78, a 16% sequential increase and a 111% year-over-year increase. Non-GAAP diluted earnings per share were $0.81, up 19% sequentially and 103% year-over-year. These figures clearly reflect NVIDIA's sustained strong performance and powerful profitability, delivering substantial returns for investors.

Across its business segments, NVIDIA demonstrated robust growth. The gaming business, its traditional core, generated $3.3 billion in revenue, a 14% sequential increase and a 15% year-over-year increase, maintaining a steady growth trajectory. However, compared to the explosive growth in other segments, the gaming business's growth rate was relatively moderate, perhaps reflecting intensifying competition and slowing overall market growth.

NVIDIA's true growth engine, however, lies in its data center business. This segment delivered $30.8 billion in revenue, a 17% sequential increase and an astounding 112% year-over-year growth, also setting a new record. This significant surge is primarily attributable to the rapid advancement and widespread adoption of AI technologies, coupled with NVIDIA's technological leadership in AI chips. The massive demand for AI computing power from businesses and institutions directly fueled the booming growth of NVIDIA's data center business, making it the primary driver of its revenue expansion.

Beyond the data center, other business segments also performed exceptionally well. Professional visualization revenue reached $486 million, up 7% sequentially and 17% year-over-year, showcasing a stable and consistent growth trend. Automotive revenue reached $449 million, surging 30% sequentially and 72% year-over-year, reflecting NVIDIA's success in expanding its market share in autonomous driving and in-vehicle intelligent systems.

Looking ahead, NVIDIA expressed strong confidence in its Q4 FY25 performance, projecting revenue of $37.5 billion (approximately RMB 271.45 billion), plus or minus 2%. This forecast further demonstrates NVIDIA's confidence in its future growth and its expectation that its strong momentum will continue. The company also projects GAAP and non-GAAP gross margins of 73.0% and 73.5%, respectively, plus or minus 50 basis points, maintaining high profitability levels. Operating expenses are projected at $4.8 billion and $3.4 billion, respectively, with other income and expenses estimated at approximately $400 million. GAAP and non-GAAP tax rates are projected at 16.5%, plus or minus 1%, excluding any one-time items.

In summary, NVIDIA's Q3 FY25 earnings report showcases strong growth and significant profitability across all business segments, particularly the explosive growth of its data center business, further solidifying its technological leadership in the age of AI. Its optimistic outlook for future performance suggests that NVIDIA will continue its strong growth trajectory and remain a leader in the global technology industry. This report is not only a testament to NVIDIA's success but also a powerful interpretation of future technology trends, injecting new vitality into the tech sector and underscoring the burgeoning development of the AI era. NVIDIA's success story provides valuable lessons and inspiration for other tech companies, encouraging greater investment in AI innovation and applications to drive technological progress and societal development. NVIDIA's future will undoubtedly remain a focal point for the industry, and its performance in the AI sector will profoundly impact the global tech landscape and its future direction. The release of this report is not just a successful earnings announcement but a powerful interpretation of future technological trends.


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