NVIDIA Q3 Revenue Jumps 62% to $57B as Shares Dip Over 2%
NVIDIA shares fell over 2% Friday as broad tech valuations came under pressure from escalating AI infrastructure spending concerns. The company reported fiscal Q3 revenue of $57 billion, up 62% year over year, and guided Q4 sales near $65 billion, underscoring robust demand for its Blackwell chips.
1. Shares Slip on AI Concerns
Shares opened lower and fell over 2% on Friday as investors grew wary of rising AI infrastructure investments and uncertain returns. Broad tech valuations also retreated, reflecting heightened scrutiny of heavy AI spending.
2. Fiscal Third-Quarter Performance
NVIDIA reported fiscal third-quarter revenue of $57 billion, up 62% year over year and 22% sequentially, driven by strong sales of Blackwell-architecture GPUs in data centers. Net income and operating margins also expanded, reflecting increased scale and pricing power.
3. Fourth-Quarter Guidance
The company guided fourth-quarter revenue near $65 billion, plus or minus 2%, citing sustained demand for AI training chips and thawing U.S.-China trade tensions that enable H200 shipments. Management emphasized continued investments in next-generation AI platforms.
4. Competitive Profitability Metrics
NVIDIA's gross margin rose to 73.4% in Q3, delivering a return on equity of 99.2%, both far exceeding typical hardware peers. These profitability metrics underscore its dominant market position against competitors like Supermicro.