Nvidia shares sink on earnings despite 94% revenue growth as AI demand remains strong

In what is becoming a must-watch event for Wall Street types, Nvidia released its latest earnings report after the market closed Wednesday, reporting revenue and earnings that beat analysts’ estimates.

The chipmaker’s revenue reached $35 billion in the third fiscal quarter of 2025 that ended on October 27, up 94% from the same period last year. Adjusted earnings more than doubled to 81 cents per share in the prior year.

Despite the strong results, traders seemed to be disappointed with the tech powerhouse in their bullish outlook. The company is forecasting revenue of $37.5 billion in its next quarter, plus or minus 2%. While the analyst estimate was $37.1 billion, according to data compiled by Bloomberg, other analyst estimates were higher at $41 billion.

Nvidia’s stock fell more than 4% in the minutes after the earnings results were released, before recovering some of those losses.

Despite the lack of confidence among traders, Nvidia’s management revealed its record quarter, including a 112% profit in the revenue of its Record Center division.

“The age of AI is in full swing, driving global change at NVIDIA,” Jensen Huang, co-founder and CEO, said in a statement. “AI is transforming every industry, company and country.”

Nvidia’s dominance of the stock market has deepened after it ousted Apple earlier this year as the world’s most valuable company. The Santa Clara, California-based company was added to the Dow Jones Industrial Average earlier this month, replacing Intel, and is seen as a bellwether in the growing AI industry.

Shares of Nvidia were down about 0.8% during Wednesday’s trading session. The stock is up nearly 203% this year.