Nvidia Stock Dips Amid Optimistic Revenue Guidance and Blackwell Chip Optimism
1min read In recent developments, Nvidia has reported its fiscal third-quarter results for 2025, showcasing revenue of $35.1 billion, marking an impressive 17% sequential and 94% year-on-year growth. However, this was the first time since the beginning of fiscal 2024 that year-on-year growth didn't double, indicating a deceleration in momentum.
The company also provided guidance for the next quarter, anticipating revenue of approximately $37.5 billion. This projection exceeds the consensus analyst prediction of $37.1 billion but falls short of more optimistic estimates that reached as high as $41 billion. Following the earnings release, Nvidia shares dropped almost 0.8% during trading, with post-market losses extending to 5% at one point. CEO Jensen Huang addressed these concerns in a conference call, reassuring investors about Nvidia's outlook, particularly focusing on their new Blackwell architecture chips.
Jensen Huang confirmed that the design imperfections in the Blackwell chips have been fully rectified, and they are now in full production. The company confidently expects robust demand for these high-performance AI chips over several quarters. Analysts have viewed Blackwell as a crucial component in the ongoing evolution of AI infrastructures, with strong cloud data and AI center spending from tech giants such as Microsoft, Amazon, and Google as evidence of a broadening market demand.
Despite some supply chain concerns flagged by investment firms, industry insiders remain optimistic about Nvidia's trajectory. Financial analysts predict that Nvidia's revenue for fiscal year 2025 could double from the previous year. Furthermore, Nvidia's existing product lines, like the Hopper series, continue to experience strong market appeal, contributing significantly to revenue expectations.
While facing competition from various tech entities striving for a share of Nvidia's market dominance, the Blackwell series is anticipated to deliver substantial financial results, potentially adding billions to Nvidia’s revenue stream. However, challenges like regulatory scrutiny and external market volatility need to be navigated carefully by the company.