Nvidia(US:NVDA) Zheng Quan Shi Bao Wang·2024-11-25 23:59Core Viewpoint - Nvidia reported record sales revenue of $35.1 billion for Q3 FY2025, with a 17% quarter-over-quarter increase and a 94% year-over-year increase, marking the first time since Q1 FY2024 that the year-over-year growth rate did not double [1] - The company's guidance indicates a further slowdown in revenue growth for the next quarter, with an expected revenue of approximately $37.5 billion, representing a year-over-year growth of about 70%, which is below some analysts' expectations [1][2] Financial Performance - Nvidia's Q3 FY2025 revenue reached $35.1 billion, a record high, with a quarter-over-quarter growth of 17% and a year-over-year growth of 94% [1] - The guidance for Q4 FY2025 suggests revenue will be around $37.5 billion, which is higher than the consensus estimate of $37.1 billion but lower than some bullish forecasts [1] Product Development - The Blackwell architecture chips have resolved design flaws and are now in full production, with expected demand to exceed forecasts for several quarters [1][3] - Nvidia has sent out 13,000 samples of the Blackwell chips to customers, indicating strong competition among clients to be the first to market [4] Market Trends - There are two major trends driving the adoption of Nvidia chips globally: the shift from CPU to GPU for machine learning and the new developments in the AI sector [4] - Analysts expect Nvidia's revenue for FY2025 to reach $126.16 billion, more than double the $60.9 billion from FY2024, with further growth projected for FY2026 [5][6] Stock Performance - Following the earnings report, Nvidia's stock initially fell nearly 5% in after-hours trading, reflecting investor concerns despite the strong revenue figures [1][7] - Nvidia's stock has surged over 200% in 2024, making it the highest-valued company globally, with a 240% increase in 2023 [7] Analyst Sentiment - Analysts express optimism about Nvidia's long-term prospects, citing strong demand for AI and data center products, despite some caution regarding supply chain constraints [2][8] - Investment firms have raised their earnings per share (EPS) forecasts for Nvidia and increased the target stock price from $150 to $170 [6] Industry Impact - Nvidia's earnings are seen as a bellwether for the tech sector, particularly in AI, with strong results potentially reigniting investor interest in tech stocks [11] - The company's performance is expected to influence the short-term trajectory of the S&P 500 index, given its significant contribution to the index's returns [11][12]