Nvidia Stock Falls Despite Record Earnings: Here’s What Analysts Are Saying
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Nvidia stock (NYSE: NVDA) is trading lower in US premarkets today despite the company posting better-than-expected earnings for its fiscal Q3 2025 and providing upbeat guidance about the current quarter. Here are the key takeaways from the chip designing giant’s earnings and how analysts reacted to the report.
Nvidia reported revenues of $35.1 billion in the quarter that ended October 27. Its revenues were up 94% YoY and 17% as compared to the previous quarter. The metric was also ahead of the company’s guidance as well as the $33.16 billion that analysts were expecting.
Nvidia Posted Better Than Expected Earnings
Looking at the business segment, as has been the case for the last many quarters, the Data Center segment which sells artificial intelligence (AI) chips did all the heavy lifting with sales rising 112% YoY to $30.8 billion in the quarter. The segment’s revenues have increased multi-fold over the last two years amid the AI pivot.
“The age of AI is in full steam, propelling a global shift to NVIDIA computing,” said Nvidia CEO Jensen Huang. He added, “Demand for Hopper and anticipation for Blackwell — in full production — are incredible as foundation model makers scale pretraining, post-training and inference.”
Revenues of the Gaming and AI PC segment rose 15% YoY to $3.3 billion while the Professional Visualization segment’s revenues rose 17% to $486 million. The Automotive and Robotics segment had a good quarter with revenues rising 71% YoY to $449 million.
Nvidia Provided Upbeat Guidance
Nvidia forecast revenues of $37.5 billion at the midpoint in the current quarter which implies a YoY growth of nearly 70%. The guidance was north of the $37.1 billion that analysts were expecting.
The AI spending spree is far from over and if anything, tech companies are doubling down on their AI capex. During the earnings call, Huang said, “AI is transforming every industry, company and country. Enterprises are adopting agentic AI to revolutionize workflows. Industrial robotics investments are surging with breakthroughs in physical AI. And countries have awakened to the importance of developing their national AI and infrastructure.”
Meanwhile, as has been the case for the last many quarters, NVDA stock fell despite the earnings beat. As Daniel Newman, CEO of the Futurum Group aptly said, “No matter how good the company does … if the guide is anything less than the high end of the whisper, you will probably see some selling pressure.” Nvidia’s growth is now tapering down from triple digits to high double digits. However, it’s worth noting that the growth is coming from a much higher base and its topline is still growing much faster than any Big Tech company.
Also, given the stellar rally in NVDA shares, markets expect a much wider earnings beat from the company. As George Boubouras, head of research at Melbourne-based K2 Asset Management, said “While they delivered impressive revenue growth and momentum, the market clearly wants more.”
NVDA Shipped Blackwell Chips to Customers in Q3
During the earnings call, Nvidia said that its latest AI chip Blackwell is now in full production and it shipped 13,000 GPU samples to customers in the fiscal third quarter. The company sees strong demand for Blackwell chips and CFO Collette Kress said, “Blackwell demand is staggering, and we are racing to scale supply to meet the incredible demand customers are placing on us.”
She added, “While demand greatly exceed supply, we are on track to exceed our previous Blackwell revenue estimate of several billion dollars as our visibility into supply continues to increase.” The company expects Blackwell to remain supply-constrained for the next few quarters. Meanwhile, Huang said that the gross margins that the company makes on Blackwell will fall in the coming quarters but expects them to rise as the product matures. Over time, the company expects Blackwell sales to surpass that of Hopper which is its current top-of-the-line AI chip.
Trump’s Trade War Could Be a Risk for NVDA
The question about a potential tariff hike on chip imports from Taiwan also expectedly popped up during the earnings call. Notably, NVDA imports the bulk of its chips from Taiwan where they are manufactured by Taiwan Semiconductor Manufacturing Company. There are also fears of Trump further tightening restrictions on exports of high-end AI chips to China.
Commenting on the issue, Huang said, “Whatever the new administration decides, we’ll, of course, support the administration. And that’s our — the highest mandate. And then after that, do the best we can and just as we always do. And so, we have to simultaneously and we will comply with any regulation that comes along fully and support our customers to the best of our abilities and to compete in the marketplace.”
How Analysts Reacted to NVDA’s Earnings?
Wall Street analysts were not too perturbed by NVDA’s post-earnings price action. Susquehanna analyst Christopher Rolland reiterated his $180 target price on Nvidia and said, “Despite this “miss,” we are encouraged by robust demand for both Hopper and Blackwell and note the top line would have been higher if not for supply constraints.”
According to Jefferies analyst Blayne Curtis, “This was never the quarter that NVDA was going to blow out numbers, and we are not overly concerned with any of the issues on this call as we see increasing beats as Blackwell ramps and still a path above $5 of EPS next year.”
Curtis added, “The name will always struggle with elevated expectations, but business momentum should accelerate from here as Blackwell.”
Citi raised its target price on NVDA to $175 while Wells Fargo raised it to $185. JPMorgan too raised its target price to $170. “Bottom line, the team continues to maintain a 1- 2 step lead ahead of competitors with its silicon/ hardware/software platforms, and a strong ecosystem and the team is further distancing itself with its aggressive cadence of new product launches and more product segmentation over time,” said JPMorgan analyst Harlan Sur in his note.
