Nvidia’s fiscal third-quarter results surpassed Wall Street predictions, but its outlook for the upcoming quarter fell short of the high expectations fueled by surging AI demand.
Following the announcement, Nvidia’s shares (NASDAQ: NVDA) dropped over 2% in after-hours trading.
The company reported Q3 earnings per share (EPS) of $0.81 and revenue of $35.1 billion, outperforming analyst forecasts of $0.75 EPS and $33.09 billion in revenue, according to data from Investing.com.
Key highlights included Nvidia’s data center revenue, which reached $30.8 billion, marking a 17% increase from the previous quarter and a staggering 112% year over year growth. Analysts had projected $28.84 billion for this segment.
For the fourth quarter, Nvidia anticipates revenue of $37.5 billion, plus or minus 2%, slightly above analysts’ expectations of $37.09 billion. The company also expects GAAP gross margins of 73.0%, with a margin of 50 basis points.
Looking ahead, Nvidia faces challenges in meeting the soaring demand for its Blackwell AI chips, touted as the company’s next big innovation. Supply constraints are likely to persist for several quarters into fiscal 2026, impacting both Blackwell and Hopper systems.
“The demand for Blackwell is projected to exceed supply for some time,” Nvidia stated on Wednesday, highlighting the strain on its production capabilities amidst the explosive growth in AI demand.
