Nvidia Q3 FY 2025: Still Same — Still Good, but AI Environment is Reshaping Offering New Challenges to The Leader

Nvidia (NVDA) just reported it earned an adjusted $0.81 per share in the fiscal year ended Oct. 2024, with revenue up 94% from a year earlier to $35.08 billion. The consensus forecast had expected the company to earn $0.74 per share in Q2 on revenue of $33.25 billion. Across Nvidia’s main divisions, Data center revenue beat expectations, coming in at $30.8 billion, compared with expectations of $29.14 billion, while Automotive revenue was $449 million in the period, and Professional visualization revenue grew 17% YoY to $486 million. Gaming revenue accelerated the most, coming in at $3.3 billion in the period, up 15% YoY, ahead of expectations of $3.06 billion.

According to Q3 2025 earnings call transcript, CSPs deployed NVIDIA H200 infrastructure and high-speed networking with installations scaling to tens of thousands of GPUs to grow their business and serve rapidly rising demand for AI training and inference workloads. NVIDIA H200-powered cloud instances are now available from AWS, CoreWeave, and Microsoft Azure with Google Cloud and OCI coming soon.

Back to the financial figures, adjusted gross margins for the quarter were in line with expectations at 75%, while generating $16.79 billion in free cash flow.

In 2024 YTD, Nvidia's stock rose more than 180%, making the company one of the stock market darlings, so the main question looms: isn’t NVDA is already too expensive even to Hold? This growth was clearly driven by Nvidia's dominant position in the artificial intelligence chip market, but the market itself is changing and reshaping. So the main challenge for the chipmaker will be to adjust from classic AI learning experience demands to newly emerging methods such as mock environments and greater delay times before compiling an answer or an article. All in all, Nvidia expects revenue of $37.5 billion, plus or minus 2%, for Q4 of fiscal 2025. Analysts forecast sales of $37.1 billion for the leading hi-tech company. However, some buy-side estimates suggest revenue could be as high as $41 billion next quarter. We’ll see to adhere to the most popular Hold recommendation.