TMTPOST --  Nvidia Corporation stocks dipped as much as 5% in after hours on Wednesday even though the chipmaking giant  delivered robust growth fueled by the artificial intelligence (AI) boom and got ready for shipment of its cutting-edge chips on the horizon.

Credit：Nvidia

Nvidia posted stronger-than-anticipated top and bottom line for its third quarter of 2025 fiscal year ended October 27, though the revenue growth continued decelerating. Revnue jumped 94% year-over-year (YoY) to $35.08 billion, beating analyts’ forecast of $33.25 billion. The revenue growth slowed from a 122% YoY increase for the previous quarter. The October quarter is the first quarter that Nvidia recorded a less-than-triple-digit YoY rise since the first quarter of its 2024 fiscal year. On non-GAAP basis, adjusted earnings per share (EPS) approximatedly doubled YoY to $0.81, topping analysts expected $0.74. The EPS also slowed down compared with a 152% YoY increase three months ago.

All of Nvidia’s major segements beat estimates for the third fiscal quarter. Data Center maintained the triple-digit growth, generating $30.8 billion with a 112% YoY increase, while analysts projected $29.14 billion. Revenue from Gaming and AI PC was $3.3 billion, up 15% from a year ago. Professional Visualization revenue climbed 17% YoY to $486 million. Revenue from Automotive and Robotics hit a record of $449 million. The growth of automotive segement accelerated to 72%, from a 37% YoY increase for the preceding quarter.

Nvidia attributed Data Center’s growth to the strong demand for its latest generation of graphic processor units (GPUs). GPUs have been called the rare Earth metals--even the gold-- of AI as they deliver leading performance for AI training and inference as well as gains across a wide array of applications that use accelerated computing.

The strong YoY increase and sequential growth of 17% of Data Center revenue was driven by Nvidia Hopper computing platform for training and inferencing of large language models, recommendation engines, and generative AI applications, the Chief Financial Officer (CFO) Colette Kress commented. She said Cloud service providers represented approximately 50% of our Data Center revenue, and the remainder was represented by consumer internet and enterprise companies.

Strong YoY growth was driven by all customer types from both compute and networking, said Kress. Financial results showed Data Center compute revenue was $27.6 billion, up 132% YoY and up 22% from a quarter ago. Networking revenue was $3.1 billion, up 20% from a year ago driven by Ethernet for AI, which includes SpectrumX end-to-end ethernet platform.

In spite of the earnings beat for the past quarter, Nvidia failed to satisfy the most optimistic Wall Street expectation by revenue outlook. For the fourth quarter of 2025 fiscal year ended January, Nvidia anticipated revenue to be $37.5 billion, plus or minus 2%. That outlook, representing a 70% YoY increase, was ahead of analyts’ median consensus estimates of $37.1 billion, but was well the buyside expectations of $38.8 billion. Some of analyts even projected revenue for the fourth quarter was as high as $41 billion.

Nvidia management sent positive messages of Blackwell, the company’s next generation Data Cener architecture. “Demand for Hopper and anticipation for Blackwell — in full production — are incredible as foundation model makers scale pretraining, post-training and inference,” Nvidia CEO Jensen Huang said.

Kress said a successful mask change for Blackwell improved production yields. Blackwell production shipments are scheduled to begin in the fourth quarter of fiscal 2025 and will continue to ramp into fiscal 2026, according to Kress. That timetable suggested Nvidia will be shipping both Hopper and Blackwell systems in the fourth quarter of fiscal 2025 and beyond. Kress noted both Hopper and Blackwell systems have certain supply constraints, and the demand for Blackwell is expected to exceed supply for several quarters in fiscal 2026.

Nvidia executives have said in August that Blackwell chips would bring several billions of dollar for the fourth fiscal quarter. Revenue from Blackwell is on the track to top the previous forecast, Kress said on an earnings conference on Wednesday.

The Information reported at weekend Blackwell chips are facing serious heating issues when GPUs are connected together in server racks. Nvidia cutsomers like Microsoft, Meta, Alphabet worried about the issues could force Nvidia to further delay shipments. On the earnings call on Wednesday, Huang played down the concern. “Blackwell production is in full steam,” Huang says. “We will deliver in this quarter more Blackwells than we had previously estimated.”