Nvidia reported blowout Q3 results—revenue $57.0 billion (+22% Q/Q, +62% Y/Y), GAAP/non‑GAAP gross margins ~73.4–73.6% and EPS $1.30—and gave Q4 guidance for $65.0 billion revenue (±2%), GAAP margin ~74.8% (±50 bps) and operating expenses of about $6.7 billion, with CEO Jensen Huang calling the shift to Generative, Agentic and Physical AI “transformational” for infrastructure demand. Sell‑side reaction was largely bullish: Bank of America raised FY27/28 EPS to $7.40/$9.70 and reiterated a buy with a $275 target, Goldman and JPMorgan lifted targets to $250, and analysts highlight a roughly $1.2 trillion AI capex TAM that could drive EPS toward ~$20 by 2030 under high share assumptions. Despite the beat and upgrades, NVDA shares fell ~3.1% to $180.64 as investors flagged concentration of ownership, investments in unprofitable partners (e.g., Anthropic), data‑center constraints, potential China export limits, lumpy enterprise demand and heightened regulatory scrutiny—factors that could cap near‑term multiple expansion.
Nvidia reported Q3 revenue of $57.0 billion, up 22% sequentially and 62% year-over-year, with GAAP and non-GAAP gross margins at 73.4% and 73.6% and GAAP/non-GAAP diluted EPS of $1.30; management guided Q4 revenue to $65.0 billion (+/-2%), GAAP gross margin to ~74.8% (+/-50 bps) and operating expenses of about $6.7 billion while CEO Jensen Huang framed Generative, Agentic and Physical AI as structural drivers of multi-year infrastructure demand. CFO Colette Kress directly rebutted Michael Burry’s depreciation claims, confirming hyperscalers’ useful life assumptions of up to six years for compute/network hardware, which if accurate supports capital-return and margin durability assumptions. Sell-side reaction has been bullish on fundamentals and long-term TAM — Bank of America raised FY27/28 EPS to $7.40/$9.70 (up 5%/6%) and reiterated a $275 target while Goldman and JPMorgan lifted targets to $250 — and analysts cite a roughly $1.2 trillion AI capex TAM underpinning upside to EPS. Despite the beat and optimistic modeling, NVDA shares fell 3.15% to $180.64 (about 12.75% below its Oct. 29 peak) as investors flagged concentrated ownership, investments in unprofitable partners (e.g., Anthropic), data-center capacity/power constraints, lumpy enterprise demand, China export risks and potential regulatory scrutiny that could limit near-term multiple expansion.
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Overall Sentiment
moderately positive
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0.55
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