On Wednesday, local time in the United States, chip giant Nvidia released its financial report for the third quarter of fiscal year 2025 (corresponding to the third quarter of 2024) ending on October 27, 2024. According to the financial report, Nvidia's revenue for the third quarter was $35.082 billion, a year-on-year increase of 94% and a month on month increase of 17%; Net income of 19.309 billion US dollars, a year-on-year increase of 109%; Diluted earnings per share were $0.78, an increase of 111% compared to the same period last year.
Nvidia expects its fourth quarter revenue to be $37.5 billion, higher than the average analyst expectation of $37.1 billion, however, the highest analyst expectation is $41 billion.
After the release of the financial report, Nvidia's stock price fell more than 5% in after hours trading, and as of press time, it fell 1.8% to $143.28.
Data center business revenue exceeds expectations
In terms of specific business, Nvidia's Q3 data center business revenue was $30.8 billion, exceeding market expectations of $28.82 billion. This part of the business contributes the vast majority of Nvidia's revenue, encompassing the most important AI chips in the market.
The Q3 revenue of the gaming business was $3.28 billion, with analysts expecting $3.03 billion; The Q3 revenue of graphics workstation chips and automotive chips were $486 million and $449 million, respectively.
Nvidia's professional visualization business (selling enterprise graphics chips) had a revenue of $486 million in the third quarter, a year-on-year increase of 17% and a month on month increase of 7%.
Nvidia's automotive business revenue for the third quarter was $449 million, a 72% increase from the same period last year and a 30% increase from the previous quarter.
Nvidia expects its fourth revenue to be $37.5 billion, with a fluctuation of about 2%, higher than analysts' general expectation of $37.08 billion, but lower than analysts' highest expectation of $41 billion; Expected fourth quarter gross profit margin of 73%, with operating costs of approximately 4.8 billion US dollars; Expected fourth year other income and expenses are $400 million, excluding gains and losses from non affiliated investments.
NVIDIA founder and CEO Huang Renxun stated that the era of artificial intelligence is flourishing, leading the world to accelerate its transition towards NVIDIA computing. The strong demand for the first generation GPU, Hopper, and the high expectations for the next generation GPU, Blackwell, during the full production phase are truly astonishing, thanks to the outstanding contributions of basic model developers in pre training, post training, and inference.
Blackwell chips are currently fully operational
In terms of dividends, Nvidia will pay a cash dividend of $0.01 per share for the next quarter to all shareholders recorded on December 5, 2024, on December 27, 2024.
As of October 27, 2024, the total value of Nvidia's cash, cash equivalents, and securities was $38.487 billion. As of January 28, 2024, the company's cash, cash equivalents, and securities were valued at $25.984 billion.
Regarding the highly anticipated Nvidia Blackwell chip, Huang Renxun stated in a press release that the Blackwell chip is currently in full production and is expected to be in short supply in the coming quarters.
Huang Renxun also stated that the current Hopper chip is still very popular.
Nvidia CFO Colette Kress stated that Blackwell chips are scheduled to begin shipping this quarter and will accelerate shipments next year.