NVIDIA Corp has reported record revenue of $35.1 billion for the third quarter, surpassing its own outlook and posting a 17% sequential increase and 94% year-on-year growth. The data center segment saw significant growth, with $30.8 billion in revenue driven by strong demand for Hopper and H200 products.
The company’s AI enterprise revenue is expected to more than double from last year, backed by a growing pipeline and annualizing software service and support revenue reaching $1.5 billion. NVIDIA also reported a 14% sequential increase in gaming revenue, supported by healthy back-to-school sales and channel inventory.
However, the company faces supply constraints in the gaming segment, which are expected to impact Q4 revenue despite strong sell-through in Q3. Gross margins are also anticipated to moderate due to the ramp-up of Blackwell GPUs, potentially impacting profitability. NVIDIA has warned of potential challenges in meeting demand for networking components and concerns about competitive market conditions in China.
Despite these challenges, the company remains optimistic, with a positive outlook for Q4 revenue expected to be $37.5 billion plus or minus 2%. Share repurchases and cash dividends are also part of the company’s shareholder returns, totaling $11.2 billion.
Source: https://finance.yahoo.com/news/nvidia-corp-nvda-q3-2025-070449047.html