Nvidia once again exceeded expectations. But investors seem to want more – Seznam Zpravy

The main part of the results season in the United States is coming to an end, when several major companies from the S&P 500 index have already presented their financial results, however, the most attention was At investors again focused on Nvidia, currently the most valuable company in the world with a market capitalization of 3.58 trillion dollars.

Nvidia, known as a leader in the development of graphics chips that power ChatGPT and other artificial intelligence applications, reported results for the third fiscal quarter of 2025 on Wednesday after the close of US stock trading. The company’s net profit doubled compared to the same period last year to $20 billion. That’s more than analysts’ estimate of $17.4 billion.

The company’s revenue rose to $35.1 billion, or 94 percent, year over year, also beating analysts’ estimates of $33.28 billion. The main driver of growth was data centers, which generated $30.8 billion in revenue compared to an estimated $29.5 billion. So they went up 112 percent year on year.

The company also reported growth in adjusted earnings per share of $0.81, up 103 percent year over year. This is a financial indicator that shows the amount of profit per share of a company. Simply put, it is part of the company’s profit, which would theoretically be collected by each shareholder, if it were all distributed equally among all the shares given.

This figure also beat Wall Street’s estimate of $0.74 per share.

Investors also looked at the company’s outlook for the next quarter. Analysts expected Nvidia to report year-over-year revenue growth to $37 billion in the next quarter under review. However, the company estimates an even higher revenue of $37.5 billion, with a tolerance of plus or minus two percent.

According to analyst Tomáš Cverna from brokerage firm XTB, Nvidia surprised investors with its sales and profit exceeding market estimates.

“Thanks to large investments from technology companies such as Alphabet, Microsoft or Meta Platforms, Nvidia continues to thrive. But all these companies plan to continue with large investments in AI, which supports Nvidia’s growth potential,” said Cverna results for SZ Byznys.

On the other hand, the overall margin of the company is lower than expected, which reached 75 percent, is a disappointment and continues to be pressed. “However, the company provided a better-than-expected outlook for the quarter, confirming confidence in strong demand for AI. Despite the positive results and outlook, shares were down about two to four percent in after-market trading. It seems that the market wanted even better returns at the current valuation,” the analyst said.

“Nvidia’s quarterly numbers are in line with expectations in my opinion, and the outlook is similar, perhaps in relation to Blackwell’s expectations.” Overall, I think the numbers are decent and I expect a strong start to the year for Nvidia. However, with regard to Nvidia’s position and the current market development, I expect a slightly negative market response,” said Branislav Soták, Patria Financial analyst, in his first quick comment.

There was already tension in the markets before the results were released, as investors were expecting a big move in Nvidia shares. According to data from the Bloomberg group, it was thought that the share price could strengthen or, on the contrary, fall as much as eight percent.

Such a move would mean a change in the company’s market value of up to $300 billion, which is more than the value of most companies in the S&P 500 index even though Nvidia’s products are called more important to the markets than the upcoming December meeting of the US Federal Reserve (the Fed) or the release of inflation data.

Shares of Nvidia have gained 16 percent to the current $146 since previous results were published in August. In contrast, the PHLX Semiconductor index, which tracks the top 30 semiconductor companies in the US, fell 3.5 percent over the same period.

Nvidia stock has tripled this year, reflecting strong demand for artificial intelligence chips. The company is currently considered a major player in this rapidly growing industry as it produces the most advanced AI chips in the world.

Apart from the numbers, markets were also focused on the company’s views regarding Blackwell chips, which should be one of the main sales drivers in the coming quarters. These new chips could further strengthen Nvidia’s leadership in high-performance graphics processors, where it already controls 90 percent of the market.

Nvidia promotes Blackwell chips as a cost-effective solution that should significantly reduce operating costs and energy consumption – reportedly up to 25 times compared to current technologies. These developments could be critical for data center businesses where efficiency and cost savings are key factors.

However, recent information about problems with overheating of these processors in server cabinets caused somewhat negative market reactions. Production of Blackwell’s chips was delayed from the third quarter to December this year due to unspecified design issues.

According to the company’s current press release, Blackwell chips are in full production. Nvidia also confirmed that the demand for these chips is very high.