Nvidia’s AI-Fueled Surge Puts Q3 Results in the Spotlight
The semiconductor giant’s remarkable 196% stock surge this year has set the bar high for its upcoming fiscal 2025 third-quarter results. With a rich valuation and lofty expectations, investors will be closely watching for signs of continued growth.
A Look Back at Nvidia’s Recent Performance
The chart below summarizes the market’s immediate reaction to Nvidia’s previous four quarterly reports.
| Date | Period | Revenue (in $billion) | Year-over-year change | Earnings per share | Year-over-year change | Immediate stock price change |
| — | — | — | — | — | — | — |
| Nov. 21, 2023 | Q3 FY2024 | $18 | 206% | $4.02 | 593% | -2% |
| Feb. 21, 2023 | Q4 FY2024 | $22 | 265% | $5.16 | 486% | +16% |
| May. 22, 2024 | Q1 FY2025 | $26 | 262% | $6.12 | 461% | +9% |
| Aug. 28, 2024 | Q2 FY2025 | $30 | 122% | $0.68 | 152% | -6% |
While Nvidia’s stock initially fell after its fiscal 2024 Q3 results due to concerns about its business in China, the next two quarterly reports gave the stock a boost thanks to solid demand for its AI graphics processing units (GPUs). However, when Nvidia released its previous quarterly results in August, investors seemingly took issue with the relatively slower pace of growth.
The Bigger Picture: Nvidia’s Dominance in AI Chips
Despite the immediate fluctuations in price following its quarterly results, Nvidia stock has tripled in the past year. This is not surprising, given the company’s continued dominance in AI chips, a market that’s showing no signs of slowing down. In fact, analysts expect Nvidia’s revenue to more than double in fiscal 2025 from last year’s reading of $60.9 billion.
Nvidia’s competitors, such as AMD, have struggled to make a dent in the AI chip market. For example, AMD’s revenue in the third quarter of 2024 was up 18% year over year to $6.8 billion, which pales in comparison to Nvidia’s data center revenue growth of 154% year over year to $26.3 billion.
The company’s new generation of Blackwell AI processors is expected to maintain its technological advantage over AMD’s offerings, with analysts forecasting sales of $200 billion worth of these chips next year. If that happens, Nvidia’s revenue in the next fiscal year could exceed expectations handsomely.
What to Expect from Nvidia’s Q3 Results
When Nvidia releases its fiscal 2025 third-quarter results on Nov. 20, investors will be watching for signs of continued growth and guidance for the current quarter. If the company delivers a better-than-expected outlook, it could set the stage for more upside in this AI stock even after its terrific gains this year.
Investors would do well to focus on the bigger picture and Nvidia’s continued dominance in AI chips, rather than getting caught up in short-term fluctuations. With its strong market position and growing demand for its products, Nvidia is poised for continued success in the AI chip market.
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