Nvidia reports 94% jump in revenue to $35.1B in Q3 FY25
Despite Nvidia exceeding expectations for both revenue and earnings in Q3, the company's stock fell nearly 2% in after-hours trading, closing at $143.50.
US-based chipmaker has reported an impressive $35.1 billion in revenue for its third-quarter earnings for fiscal year 2025. This marks a 94% year-over-year growth compared to $18 billion in Q3 FY24. Additionally, there was a sequential increase of 17% from the previous quarter. The results were announced after the market closed on Wednesday.
Despite NVIDIA, the world’s largest publicly traded company by market cap, exceeding expectations for both revenue and earnings in Q3, the company's stock fell nearly 2% in after-hours trading, closing at $143.50.
“The age of AI is in full steam, propelling a global shift to NVIDIA computing. Demand for Hopper and anticipation for Blackwell—in full production—are incredible as foundation model makers scale pretraining, post-training, and inference,” said Jensen Huang, Founder and CEO of NVIDIA.
“AI is transforming every industry, company, and country. Enterprises are adopting agentic AI to revolutionise 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,” he added.
NVIDIA’s revenue growth in Q3 FY25 was primarily driven by its data center business, which more than doubled to $30.8 billion, reflecting a 112% increase from the same period last year.
The company also reported a significant jump in net income, which soared to $19.31 billion—more than doubling from $9.2 billion in Q3 FY24. However, total operating expenses rose sharply, reaching $4.2 billion in Q3 FY25, compared to $2.9 billion during the same period last year. .
Looking ahead, NVIDIA has projected a revenue of $37.5 billion for the fourth quarter of fiscal 2025, with a variance of plus or minus 2%.
Nvidia GPUs continue to serve as the backbone for large language models (LLMs) and generative AI workloads. In the quarter under review, the company announced that Hopper H200-powered instances are now available on cloud services like AWS, CoreWeave, and Microsoft Azure, with Google Cloud and Oracle Cloud Infrastructure to follow soon.
Hopper H200-powered instances are cloud computing systems built with NVIDIA's H200 GPUs, which help businesses run complex workloads more efficiently. The company also launched Denmark's largest AI supercomputer, the NVIDIA DGX SuperPOD, fueled by 1,528 NVIDIA H100 Tensor Core GPUs.
Several cloud providers in India, Japan, and Indonesia are also building AI infrastructure using NVIDIA's accelerated computing technology.
Revenue from gaming reached $3.3 billion in the third quarter, up 15% from a year ago. The automotive division generated $449 million in revenue for the third quarter, marking a 72% growth year-over-year, driven by strong demand for NVIDIA's AI and autonomous driving solutions.
Several analysts are closely monitoring the rollout of Nvidia's next-generation Blackwell chips, which are expected to further strengthen its leadership in the AI market.
“Blackwell production is in full steam. We will deliver this quarter more Blackwells than we had previously estimated," said Huang during the conference call.
The company previously revealed that these advanced AI chips are expected to generate several billion dollars in sales during the January quarter and deliver improvements in operating cost and energy efficiency for large language model inference.
NVIDIA continues to supply AI chips to major technology giants such as Microsoft, Amazon, and Meta — all of which are investing in AI infrastructure.
Edited by Megha Reddy