Nvidia (NVDA, $527.74) beats Q3 expectations, but cautions on future revenue growth issues
Nvidia Corp. beat Q3 earnings and revenue expectations. However, the semiconductor company warned that capacity issues and lower demand from Mellanox would affect near-term revenue growth in its key businesses.
Nvidia’s Q3 earnings came in at $2.91 per share, up +63% year-overt-year and 34 cents ahead of Street forecasts.
Revenues for the quarter increased +57% year-over-year to $4.73 billion, surpassing the Street consensus forecast of $4.4 billion.
The Company’s datacenter revenues (which make up around 50% of the group's total) climbed +8% quarter-over-quarter and +162% year-over-year to $1.9 billion. This includes impact of a major purchase from a China-based client, and its recent acquisition of Israel-based networking group Mellanox.
Gaming revenue surged +37% year-over-year to $2.27 billion.
According to Nvidia, gaming revenue is likely to continue to accelerate. But CFO Collette Kressal mentioned that due to industry-wide capacity constraints and long cycle times, it may take a few more months for product availability to catch up with demand.
The company’s guidance is revenue of $4.8 billion, plus or minus 2%, with CFO Collette Kress also suggesting a decline in revenue from Mellanox, which will likely mean modestly lower sequential data center revenues.
Aroon Indicator for NVDA shows an upward move is likely
NVDA's Aroon Indicator triggered a bullish signal on August 21, 2025. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 343 similar instances where the Aroon Indicator showed a similar pattern. In of the 343 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where NVDA advanced for three days, in of 365 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The 10-day RSI Indicator for NVDA moved out of overbought territory on August 01, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 44 similar instances where the indicator moved out of overbought territory. In of the 44 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 61 cases where NVDA's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on August 28, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on NVDA as a result. In of 82 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where NVDA declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 81, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. NVDA’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: NVDA's P/B Ratio (42.373) is slightly higher than the industry average of (11.162). P/E Ratio (49.624) is within average values for comparable stocks, (75.600). Projected Growth (PEG Ratio) (1.533) is also within normal values, averaging (2.116). NVDA has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.022). P/S Ratio (25.974) is also within normal values, averaging (28.100).
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a manufacturer of computer graphics processors, chipsets, and related multimedia software
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