Nvidia reports strong Q3 earnings, potential growth with new GPU announcements at CES 2025.

From Nasdaq: 2024-12-03 05:55:00

Nvidia (NASDAQ: NVDA) reported a stellar performance in Q3 fiscal 2025, with revenue and earnings soaring by 94% and 109% year over year, reaching $35.1 billion. The AI-powered data center segment drove growth, with revenue up 112% to $30.8 billion.

Despite the strong earnings, Nvidia’s stock price dropped slightly post-report as investors expected more. CEO Jensen Huang will deliver the opening keynote at CES 2025, where new GPUs like RTX 5080 and 5090 are expected to be announced, potentially boosting share prices.

Nvidia’s AI-optimized hardware and software offerings are seeing high demand, particularly with the Hopper architecture GPUs and next-generation Blackwell architecture systems. The company’s networking services are also thriving, with revenue up 20% YoY in Q3.

Analysts are bullish on Nvidia stock, with a median target price of $175, implying a 26.6% upside. The company’s P/E ratio of 54.4 is lower than its average, and the growth-adjusted PEG ratio of 0.23 is reasonable, indicating potential for further growth.

Nvidia is a dominant player in enterprise AI and industrial AI, with its cloud-native enterprise AI software suite and Omniverse platform set to benefit from increasing adoption. The company’s networking business is also growing, driven by demand from cloud service providers and supercomputing centers.

Consider investing in Nvidia ahead of its upcoming share price catalyst in January 2025. While it wasn’t on the Motley Fool’s list of 10 best stocks to buy now, historical returns show the potential for significant growth. Stock Advisor service has outperformed the S&P 500 since 2002.



Read more at Nasdaq: Should You Buy Nvidia Stock Before Jan. 6?