On a remarkable Wednesday, Nvidia Corp. (NASDAQ: NVDA), a globally renowned tech giant specializing in semiconductor development, revealed its financial results for the third quarter of fiscal 2025. According to the official announcement, Nvidia achieved an impressive revenue milestone of $35.08 billion, marking a substantial 94% increase from the $18.12 billion recorded in the same period last year.
The company further reported earning $19.31 billion in the quarter, more than doubling the $9.24 billion it had posted in last year’s third quarter. This remarkable financial performance resulted in an earnings per share (EPS) of 81 cents, surpassing Wall Street analysts’ expectations, who had predicted an EPS of 75 cents on a projected revenue of approximately $33.71 billion.
Nvidia Shareholders Express Concerns Amidst Competitive Pressure
Despite Nvidia’s outstanding fiscal performance, shareholders have voiced midterm concerns, particularly in light of the intense competition within the AI industry. According to FactSet data, Nvidia currently stands as the third-ranked semiconductor company in terms of gross profit margins. Arm Holdings, a semiconductor firm known for licensing its intellectual property, boasts an impressive 97% margin, while Broadcom, with its expansive software business, maintains a margin of 76.6%.
Nvidia, on the other hand, reported a 75% margin in the last quarter, but has experienced a slight decline in margins during its fiscal third quarter, with expectations of further decreases in the upcoming fourth quarter. Consequently, shareholder apprehensions have contributed to a nearly 3% drop in Nvidia’s stock market value within the past 24 hours, trading at approximately $142.
Impact on AI-Related Crypto Markets
Nvidia’s strong earnings report has sent ripples through the AI-related cryptocurrency markets. Following the company’s stellar earnings performance, optimism in AI-linked crypto projects has notably waned. Recent data indicates that the market capitalization of artificial intelligence (AI) cryptocurrencies has dropped by nearly 6%, hovering around $33.8 billion at the time of writing.
Several AI-related tokens, including Near Protocol (NEAR), Internet Computer (ICP), and Render (RENDER), have experienced losses of approximately 5% over the last 24 hours. Meanwhile, some tokens have defied the bearish trend, with Bittensor (TAO), Arkham (ARKM), and Virtuals Protocol (VIRTUAL) registering gains ranging from 2% to 5% in the same timeframe.
FAQs
Why Is Nvidia Stock Going Down Today?
Nvidia stock has taken a downward turn today due to concerns over declining profit margins. The company has forecasted further margin decreases in the fourth quarter, leading to shareholder worries about intensifying competition in the AI industry. These factors have collectively contributed to a nearly 3% drop in the stock price.
