NVIDIA's Record Sales and Blackwell Promise Stir Mixed Investor Reactions Amidst Supply Concerns
1min read NVIDIA recently announced its fiscal Q3 2025 earnings, revealing record sales of $35.1 billion, marking a 17% increase from the previous quarter and a 94% rise year-on-year. This growth, although substantial, was the first instance since Q1 2024 where quarterly year-over-year growth did not double.
Despite the impressive numbers, NVIDIA projected further deceleration in the upcoming quarter. The company anticipates Q4 revenue to rise by approximately 70% year-on-year, with projected earnings of $37.5 billion. This figure surpasses analysts' consensus of $37.1 billion but falls short of some investor expectations, which were as high as $41.0 billion.
Following the earnings release, NVIDIA's stock initially dropped as much as 5% after hours before recovering most losses. CEO Jensen Huang took to a conference call to reassure investors, addressing the much-anticipated Blackwell chip.
Huang confirmed that previously reported design flaws have been fully resolved, and the Blackwell chip is now in full production. Emphasizing its potential, he noted that demand for the high-performance chip may exceed expectations for several quarters.
Industry analysts, including Wedbush’s Daniel Ives, maintained a bullish stance, suggesting that the market still underestimates the demand trajectory for these chips over the next 12 to 18 months. This sentiment is supported by strong AI and data center spending from tech giants, indicating substantial enterprise AI adoption.
Conversely, some analysts cautioned that supply chain constraints may impact the short-term stock outlook, highlighting potential challenges NVIDIA might face as it ramps up Blackwell production to meet global demand.
NVIDIA reported its first Blackwell chip shipments, with 13,000 samples delivered to customers. CFO Colette Kress projected that next year’s shipments will grow enough to generate "billions of dollars" in revenue by Q4 2025.