Nvidia(US:NVDA) Tianfeng Securities·2024-12-11 08:27Investment Rating - The investment rating for NVIDIA is "Buy" with a 6-month outlook [1]. Core Views - NVIDIA reported Q3 FY25 revenue of $35.08 billion, a year-over-year increase of 94% and a quarter-over-quarter increase of 17%, exceeding the company's previous guidance of $32.5 billion and Bloomberg consensus of $33.25 billion by 5.5% [1]. - The company anticipates total revenue for Q4 FY25 to be $37.5 billion, with a potential fluctuation of 2% [1]. - NVIDIA's data center revenue reached $30.8 billion, reflecting a year-over-year growth of 112% and a quarter-over-quarter increase of 17% [1]. Summary by Sections Financial Performance - Non-GAAP gross margin for Q3 FY25 was 75%, remaining flat year-over-year but down 0.7 percentage points quarter-over-quarter [1]. - Non-GAAP net profit was $20.01 billion, a year-over-year increase of 100% and a quarter-over-quarter increase of 18%, surpassing Bloomberg consensus of $18.56 billion [1]. - Non-GAAP earnings per share were $0.81, reflecting a quarter-over-quarter growth of 19% and a year-over-year growth of 103% [1]. Business Dynamics - Demand for the Blackwell series is strong, with the company significantly expanding production capacity [1]. - The company delivered 13,000 GPU samples in Q3, including the first Blackwell DGX engineering samples [1]. - The networking business saw a year-over-year revenue growth of 20%, with expectations for quarter-over-quarter growth in Q4 [1]. Investment Recommendations - Given the continued demand for Hopper and the anticipated revenue from Blackwell exceeding previous forecasts, the revenue forecast for CY2024 has been raised from $128.3 billion to $131.3 billion [1]. - Non-GAAP net profit estimates for CY2024 have been increased from $75.7 billion to $77.5 billion [1]. - The company maintains revenue projections of $205.7 billion and $288.0 billion for CY2025 and CY2026, respectively, with non-GAAP net profits of $122.5 billion and $172.8 billion for the same years [1].