Nvidia’s third quarter was characterized by strong demand for its AI hardware and software, resulting in better-than-expected financial results and a positive market reaction. Management credited the surge in data center revenue to the rapid adoption of new GPU architectures such as Blackwell and continued momentum across hyperscaler and enterprise clients. CFO Colette Kress emphasized that the company is “still in the early innings” of platform shifts toward accelerated computing and AI, adding that customer demand continues to outpace supply. CEO Jensen Huang highlighted the broadening impact of generative and agentic AI, noting, “We excel at every phase of AI, from pre-training and post-training to inference.”
Is now the time to buy NVDA? Find out in our full research report (it’s free for active Edge members).
Nvidia (NVDA) Q3 CY2025 Highlights:
- Revenue: $57.01 billion vs analyst estimates of $55.45 billion (62.5% year-on-year growth, 2.8% beat)
- Adjusted EPS: $1.30 vs analyst estimates of $1.26 (3.5% beat)
- Adjusted EBITDA: $38.5 billion vs analyst estimates of $37.14 billion (67.5% margin, 3.7% beat)
- Revenue Guidance for Q4 CY2025 is $65 billion at the midpoint, above analyst estimates of $62.38 billion
- Operating Margin: 63.2%, in line with the same quarter last year
- Inventory Days Outstanding: 119, up from 106 in the previous quarter
- Market Capitalization: $4.32 trillion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Nvidia’s Q3 Earnings Call
- Joseph Moore (Morgan Stanley) asked about the company’s $500 billion Blackwell and Rubin revenue forecast, to which CFO Colette Kress confirmed ongoing progress and suggested further upside due to new orders and expanding partnerships.
- C.J. Muse (Cantor Fitzgerald) inquired about the persistence of AI infrastructure demand, especially whether supply will catch up with demand in the next 12 to 18 months. CEO Jensen Huang described multiple simultaneous growth drivers and said demand for Nvidia’s GPUs remains strong across diverse applications.
- Vivek Arya (Bank of America Securities) questioned how much of the long-term AI infrastructure buildout would be financed by customers versus vendors. Huang responded that hyperscaler and industry investments are largely cash-flow funded, with additional opportunities as more sectors engage with AI.
- Stacy Rasgon (Bernstein Research) asked about margin outlook and the main sources of cost pressure. Kress cited rising input prices for components and emphasized efforts to optimize costs and product mix, while Huang added that long-term supply chain planning supports margin stability.
- Aaron Rakers (Wells Fargo) sought views on the competitive threat from AI ASICs (application-specific integrated circuits). Huang argued that Nvidia’s platform remains differentiated due to its versatility, performance across AI workloads, and ecosystem scale, making it difficult for alternatives to match.
Catalysts in Upcoming Quarters
In upcoming quarters, the StockStory team will be watching (1) the pace of adoption for new GPU platforms such as Rubin and CPX, (2) the ability of Nvidia’s supply chain to keep up with demand and mitigate component cost pressures, and (3) the impact of geopolitical developments, particularly export restrictions, on sales diversification. Execution on large-scale industry partnerships and progress in networking technology will also be important markers of success.
Nvidia currently trades at $176.87, down from $186.96 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members).
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