Nvidia earnings live updates: Stock dips despite earnings beat amid sky-high expectations
Nvidia reported earnings that saw revenue and EPS come in stronger than Wall Street forecasts, though the stock fell 2% amid high expectations.
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- Nvidia reported third-quarter earnings on Wednesday.
- The chipmaking giant reported revenue and earnings per share that beat consensus estimates.
- Nvidia stock fell 2% in volatile after-hours trading ahead of its 5 p.m. ET call with analysts.
Nvidia reported third-quarter earnings on Wednesday after the closing bell.
The company reported revenue for the period of $35.08 billion, beating the consensus analyst estimate of $33.25 billion.
Nvidia also forecast fourth-quarter sales of $37.5 billion, plus or minus 2%, lining up with estimates of $37.1 billion.
The chipmaking giant said production for its Blackwell chip — its follow-up to the wildly popular Hopper chip favored by many Big Tech companies — will continue ramping up into fiscal 2026.
"Demand for Hopper and anticipation for Blackwell — in full production — are incredible as foundation model makers scale pretraining, post-training and inference," Nvidia CEO Jensen Huang said in the earnings release.
Nvidia CFO Colette Kress said that demand for Blackwell "is expected to exceed supply for several quarters in fiscal 2026."
Nvidia's stock fell 2% in volatile after-hours trading shortly after the results. The stock dropped 1% during regular trading on Wednesday, though it is up 194% so far in 2024.
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Nvidia stock was down 2% heading into its third-quarter earnings report.
The intra-day decline was more than triple the Nasdaq's 0.6% decline, and far outpaced the S&P 500's 0.4% dip.
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The options market implies an 8% swing in Nvidia stock in either direction after it reports its earnings results later today.
If realized, the swing would imply a $300 billion gain or loss in market value for the AI giant. Nvidia has a market valuation of about $3.53 trillion as of Wednesday afternoon.
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Bloomberg Intelligence analyst Kunjan Sobhani said in a recent note that he expects Nvidia's profit margins to remain well above the 70% level, which is high for a hardware manufacturer.
"Gross margin is likely to decline as much as expected in 4Q yet remain comfortably above 73%," Sobhani said.
"Nvidia is likely to solidly exceed 3Q revenue consensus more than it did in the past two quarters and the company will likely raise 4Q guidance, driven by greater adoption of its Hopper family, even as hyperscaler customers await the Blackwell ramp-up in 2025," Bloomberg Intelligence analyst Kunjan Sobhani said in a recent note.
Sobhani highlighted that Blackwell delay concerns were likely solved in the third-quarter, setting up the expectation that shipments "to key customers" will begin in the fourth-quarter.
"Increased capex guidance from hyperscalers has further boosted confidence in near-term sales. We expect small volume shipments of Blackwell in fiscal 4Q, reaching full speed in 1Q26, though supply remains constrained," Sobhani said.
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According to CFRA Research analyst Angelo Zino, investors should manage expectations around guidance for Nvidia's highly anticipated Blackwell launch.
"We caution investors to temper expectations for Blackwell inclusion for the Jan-Q outlook (we conservatively look for $3B-$5B in sales), limiting upside to consensus views in the near term as NVDA likely takes a somewhat conservative stance to provide itself with a buffer," Zino said in a recent note.
Still, Zino expects Blackwell chips will be sold out for much of 2025.
"We expect Blackwell to be supply constrained through CY 25, given heightened demand from hyperscalers to support next-generation data centers. In addition to Blackwell expectations/performance concerns that will likely dominate NVDA's Q&A session on the call, we expect investors to dissect any comments on tariffs/Sovereign AI after Trump's victory," Zino said.
CFRA Research rates Nvidia at "Buy" with a $160 price target.
