NVIDIA’s Record-Breaking Financial Performance in Q3 of Fiscal Year 2025
On November 20, 2024, NVIDIA Corporation, a leader in the technology industry known for its graphics processing units (GPUs), reported impressive financial results for the third quarter of fiscal year 2025. The company achieved record-breaking revenue figures, showcasing significant growth and highlighting the surging demand for its products, particularly in the field of artificial intelligence (AI).
Quarterly Revenue and Earnings Overview
NVIDIA reported a total revenue of $35.1 billion for the third quarter, reflecting a 17% increase compared to the second quarter and a remarkable 94% growth from the same period the previous year. This surge in revenue underscores the increasing adoption of NVIDIA’s technology solutions across various sectors. Data Center revenue, a crucial segment for NVIDIA, reached a record $30.8 billion, marking a 17% rise from the previous quarter and an astounding 112% increase from the third quarter of 2024.
The company’s earnings per share (EPS) also saw substantial growth. Under Generally Accepted Accounting Principles (GAAP), the EPS was $0.78, which represents a 16% rise from the last quarter and a 111% increase from a year ago. On a non-GAAP basis, the EPS was $0.81, up 19% from the previous quarter and 103% from a year earlier.
The Rise of AI and NVIDIA’s Strategic Position
Jensen Huang, the founder and CEO of NVIDIA, emphasized the transformative impact of AI on various industries. He noted that AI is driving a global shift towards NVIDIA computing, as companies and countries recognize the potential of AI in revolutionizing workflows and operations. The company’s Hopper and Blackwell platforms, which are essential for AI model training and inference, are experiencing significant demand, further solidifying NVIDIA’s position as a leader in AI technology.
Huang highlighted the rapid adoption of agentic AI by enterprises, the increasing investments in industrial robotics, and the global recognition of AI’s importance in national infrastructure development. This strategic positioning allows NVIDIA to cater to a wide range of industries seeking to harness the power of AI.
Quarterly Dividend and Financial Summary
NVIDIA announced its intention to pay a quarterly cash dividend of $0.01 per share on December 27, 2024, to shareholders of record on December 5, 2024. This move reflects the company’s commitment to returning value to its shareholders.
In terms of financial performance, NVIDIA’s GAAP operating income for the third quarter was $21.869 billion, marking a 17% increase from the previous quarter and a 110% rise from a year ago. The company’s net income under GAAP was $19.309 billion, up 16% from the previous quarter and 109% from the same period last year.
Non-GAAP Financial Performance
NVIDIA’s non-GAAP financial results also demonstrated strong growth. The company’s non-GAAP operating income for the third quarter was $23.276 billion, a 17% increase from the previous quarter and a 101% rise from the third quarter of fiscal year 2024. The non-GAAP net income for the quarter was $20.010 billion, representing an 18% increase from the previous quarter and a 100% rise from a year ago.
Outlook for the Fourth Quarter
Looking ahead to the fourth quarter of fiscal year 2025, NVIDIA expects revenue to reach approximately $37.5 billion, with a potential variation of 2%. The company anticipates GAAP and non-GAAP gross margins to be around 73.0% and 73.5%, respectively, with GAAP and non-GAAP operating expenses estimated at $4.8 billion and $3.4 billion, respectively. Furthermore, NVIDIA expects other income and expenses to result in an income of approximately $400 million, excluding gains and losses from non-affiliated investments.
Key Highlights and Achievements
NVIDIA’s achievements in the third quarter extend beyond its financial performance. The company made significant progress in several key areas:
Data Center
- Achieved a record Data Center revenue of $30.8 billion, reflecting a 17% increase from the previous quarter and a 112% rise from a year ago.
- Announced the availability of NVIDIA Hopper H200-powered instances in major cloud services, including AWS, CoreWeave, and Microsoft Azure, with Google Cloud and Oracle Cloud Infrastructure coming soon.
- Launched Denmark’s largest sovereign AI supercomputer, driven by NVIDIA DGX SuperPOD with 1,528 NVIDIA H100 Tensor Core GPUs.
- Introduced the NVIDIA AI Aerial platform, collaborating with T-Mobile, Ericsson, and Nokia to accelerate AI-RAN commercialization.
Gaming and AI PC
- Generated $3.3 billion in Gaming revenue, up 14% from the previous quarter and 15% from the same period last year.
- Celebrated the 25th anniversary of GeForce 256, the world’s first GPU, marking a milestone in gaming and AI technology.
- Demonstrated NVIDIA ACE and digital human technologies at Gamescom, showcasing advancements in in-game character responses.
Professional Visualization
- Achieved third-quarter revenue of $486 million, a 7% increase from the previous quarter and a 17% rise from a year ago.
- Announced Foxconn’s use of NVIDIA Omniverse to integrate digital twins and industrial AI for faster factory setups.
Automotive and Robotics
- Reported $449 million in Automotive revenue, up 30% from the previous quarter and 72% from the same period last year.
- Revealed Volvo’s new electric SUV built on NVIDIA accelerated computing.
Conclusion
NVIDIA’s exceptional financial performance in the third quarter of fiscal year 2025 underscores its strategic positioning in the technology industry. The company’s strong growth in revenue and earnings reflects the increasing demand for its AI-driven solutions across various sectors.
As NVIDIA continues to innovate and expand its product offerings, it remains at the forefront of the AI revolution, empowering industries worldwide to harness the transformative power of AI. The company’s commitment to delivering cutting-edge technology and driving industry advancements positions it as a leader in the rapidly evolving technology landscape.
For more detailed financial information and insights, interested individuals can visit NVIDIA’s investor relations website at NVIDIA Investor Relations.
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