Nvidia Q3 Earnings: What Investors Need to Know

As Nvidia (NASDAQ: NVDA) prepares to report its fiscal Q3 2025 earnings on November 20, investors are eager to understand the key factors driving the company's performance. With a year-to-date stock gain of nearly 240%, Nvidia has proven its resilience and growth potential. Here's what investors need to know ahead of the Q3 earnings report.

1. **Data Center Segment Leads Growth**

Nvidia's Data Center segment is expected to be the primary driver of growth in Q3. According to Visible Alpha, revenues are projected to reach $29.0 billion, up nearly 50% from January 2024 estimates. This surge is driven by strong demand for GPUs from cloud service providers and the shift to accelerated computing in data centers for AI. The Gaming segment is also expected to contribute significantly, with revenues projected to reach $4.1 billion.



2. **Geopolitical Tensions and Supply Chain Challenges**

Geopolitical tensions, particularly those involving China, have impacted Nvidia's supply chain and sales. The Biden administration's restrictions on AI chip exports to China have affected Nvidia, as China is a major market for its GPUs. Additionally, the U.S.-China trade war has led to supply chain disruptions, impacting Nvidia's production and sales. Despite these challenges, Nvidia has maintained strong growth in its Data Center segment, driven by demand for AI and accelerated computing.

3. **AI and Data Center Technologies Drive Future Growth**

Nvidia's AI and data center technologies are poised to drive future growth. The company's Blackwell chip, expected to ship several billion dollars in revenue in Q4 2024, will further boost growth. As Nvidia's customers, including hyperscalers and cloud-service providers, increasingly adopt AI applications, the Blackwell chip is expected to become a critical growth engine for the company.

4. **Strong Earnings Momentum**

Nvidia has consistently beaten analyst expectations in recent quarters. In Q2, earnings per share (EPS) of $2.70 surpassed estimates by a whopping 30%, while revenue crushed Street estimates by 22%, coming in at $13.51 billion. For Q3, analysts expect EPS of $3.10 and revenue of $14.89 billion, representing a significant increase from the year-ago quarter.

In conclusion, investors should focus on Nvidia's Data Center segment, geopolitical tensions, and the company's AI and data center technologies when evaluating its Q3 earnings report. With strong earnings momentum and a promising outlook, Nvidia remains an attractive investment opportunity for tech investors.