Nvidia Poised to Smash Records Again with Q3 Results Amid AI Frenzy
2min read As global anticipation builds, Nvidia, the world's highest-valued company and described as the "world's most important stock," is set to release its financial results for the third quarter of the 2025 fiscal year. The much-awaited announcement follows a staggering 240% surge in Nvidia's stock this year, fueled by the global fervor for artificial intelligence (AI). Investors are hopeful that Nvidia will once again surpass market expectations, reigniting enthusiasm for AI investments worldwide.
Analysts are predicting a significant uptick in Nvidia's revenue, driven by the rampant demand for AI infrastructure from global businesses and key government sectors. Major companies, including tech giants Meta, Microsoft, Google, and Amazon, have significantly increased their spending on Nvidia's AI GPU resources, underscoring the relentless wave of interest in AI infrastructure expansion. This demand extends to AI leaders like OpenAI and government agencies focusing on "sovereign AI systems," indicating that the momentum behind global AI development shows no signs of slowing.
According to the latest data aggregated by Visible Alpha, analysts project that Nvidia will achieve an 84% year-over-year revenue increase for the third quarter, reaching a total of $332.8 billion. Net profit is expected to rise to $174.5 billion, equating to $0.70 per share, compared to the previous year's $92.4 billion in profit or $0.37 per share. This would mark Nvidia's sixth consecutive quarter of record-breaking sales and profitability.
Nvidia's recent 1-for-10 stock split reflects continued confidence in its future, with its shares closing at $141.98 last Friday. Analysts on Wall Street remain bullish, with Bank of America reiterating a "buy" rating and upping its price target from $165 to $190, exceeding the overall consensus estimate.
Industry leaders' insatiable appetite for AI technology continues, especially in data center AI chips where Nvidia holds a commanding 80%-90% market share. As infrastructure spending related to AI chips intensifies, Nvidia's stock is poised for further gains. Analysts anticipate another quarter of record revenue in its data center segment, projecting a revenue increase from $263 billion in Q2 to a new high of $295.3 billion in Q3.
Nvidia's CEO, Jensen Huang, continues to emphasize the importance of modernizing global data centers using Nvidia AI GPUs. Meanwhile, financial institutions like Morgan Stanley have recently increased their 12-month price targets due to the expected robust growth in data center contributions driven by AI enthusiasm.
Supply chain concerns have been raised, particularly regarding the heating issues with Nvidia's latest Blackwell architecture AI GPUs in densely packed server racks. These issues have reportedly necessitated design adjustments, prompting questions about delivery timelines. Nvidia has assured these changes are typical in large-scale releases.
Expectations are high as Nvidia prepares for widespread production of its Blackwell AI GPUs by January, with developments closely watched by analysts eager to assess both the resolution of technical challenges and the product's impact on Nvidia's growth trajectory.
