It’s been a few years now that Nvidia’s star has been soaring with the artificial intelligence boom, and with it, its sales and profits. The third quarter of the fiscal year 2025, which ended in October (the company’s fiscal year has shifted), continued this. Sales and profit reached a new record, and the forecast for the ongoing fourth quarter says that in the next three months Nvidia will be even higher, it is still not clear where it will climb.
In the previous second (fiscal) quarter, Nvidia jumped over $30 billion in revenue, if only by a small margin, and announced that it expects something like $32.5 billion in the third quarter. But since the company’s forecasts are always lower than the real result, we guessed based on a similar change in Q2 that the result in Q3 could be up to $35 billion.
Record sales and profit
And this was also confirmed, the company announced sales $35.082 billionwhich is an increase of 17% compared to the previous quarter, but at the same time it is almost twice the sales compared to last year – to be exact, it is an increase of 94% (and at the same time it was already a threefold increase compared to the same period a year ago; in November 2022 the company also announced quarterly sales of less than $6 billion).
Nvidia’s gross margin is extremely high compared to the competition and reached 74.6% this quarter (but it was already 75.1% in Q2). This made a net profit $19.309 billion (78 cents per share). For example, this is close to the gross revenue (not profit) of Intel and AMD combined ($13.284 billion and $6.819 billion).
Even more interesting is the comparison with Apple – this company, generally considered the symbol of an extremely profitable and rich company, had a net profit of “only” $14.736 billion in the third quarter (July to September 2024). So Nvidia has surpassed it this time, in the context of which it probably makes sense that it has risen to the position of the imaginary most valuable company in the world in terms of share value.
However, it has to be said that this quarter, Apple had an uncharacteristically lower profit due to pre-tax accounting, and in the same period a year ago, it had a net profit of $22.956 billion. That’s probably a more typical number for him. However, as we will see in the forecast, it is quite possible that in the next quarter Nvidia will catch up even without the help of this handicap.
By the way, for a better idea, these numbers are in crowns – Nvidia’s profit for August to October comes to 844.4 billion CZK and net profit to 164.2 billion CZK. Both sales and profit are, of course, record for Nvidia. Even for any chip company, Nvidia has outgrown the previously dominant Intel more than a year ago.
Almost 90% of sales are server GPUs and accessories
The vast majority (88.5%) of this revenue was for data center products – $31.036 billion, which was a 112% year-over-year increase. Revenue classified under the “Graphics” category was $4.046 billion, up just 16% year over year.
Nvidia states that the category products Data Center accounted for $30.771 billion, of which $27.644 billion was direct computing hardware (a 132% year-over-year revenue increase) and $3.127 billion was networking products (a 20% increase).
Nvidia Q3 FY2025 Financial Results
Category Gaming had sales of $3.279 billion. It is only slightly larger than the network infrastructure, but the year-on-year increase was lower, by 15%. The Gaming category probably also includes some GeForce graphics that are actually used for artificial intelligence in smaller companies or for development, so it is probably not a pure expression of how much money Nvidia takes from the gaming market.
Professional Visualization (Nvidia RTX graphics pro, formerly Quadro) had revenue of $486 million, up 17% year over year, Automotive $449 million (a 72% year-over-year improvement).
Nvidia Q3 FY2025 Financial Results
Nvidia will probably climb to at least $40 billion
As we mentioned, Nvidia still expects further revenue growth driven by the mania surrounding artificial intelligence. The official forecast for the last quarter of fiscal 2025 (November 2024 to January 2025) is 37.5 billion plus or minus 2%. Unless something goes wrong in the world economy, it will likely be overshot again in a similar fashion to previous quarters. This means that the company’s revenue could break another target and reach or exceed $40 billion per quarter.
And it’s probably quite possible that with that, the net profit would have already reached the roughly $22.5-23.0 billion, and therefore regularly equaled the profits that Apple has for the quarter. At the same time, he needs much higher sales, which for him are some $90-95 billion per quarter. Nvidia’s business is such a “broth” in terms of margins that “Cuppertin” doesn’t even dream about it.
Source: www.cnews.cz
