NVIDIA Q3 Earnings Preview: AI Boom and Datacenter Growth Set to Shine

NVIDIA Corporation NVDA is poised to deliver another stellar quarterly performance when it announces third-quarter fiscal 2025 results on Nov. 20. The company, a pivotal force in generative artificial intelligence (AI) and large language models, is expected to showcase robust revenue growth, driven by surging demand for its advanced chips from the datacenter market.Click here to know how NVDA’s overall fiscal third-quarter results are likely to be.NVIDIA Corporation Price and EPS Surprise NVIDIA Corporation price-eps-surprise | NVIDIA Corporation QuoteStay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Datacenter Segment: NVIDIA’s Growth EngineThe datacenter segment has been NVIDIA’s crown jewel, propelling its financial performance to unprecedented heights. In the second quarter of fiscal 2025, the segment posted a jaw-dropping 154% year-over-year growth, generating $26.27 billion in revenues — a 16% sequential increase. This growth underscores the market’s hunger for computational power, fueled by generative AI applications.The momentum is expected to persist. Our model forecasts NVIDIA’s datacenter revenues to reach $28.48 billion in the third quarter, marking a remarkable 96% year-over-year increase and an 8% sequential rise. This surge reflects the company’s indispensable role in the AI ecosystem, as enterprises increasingly rely on its cutting-edge Hopper, Ampere and Blackwell architecture graphics processing units (GPUs) to drive innovation.Generative AI: The Billion-Dollar Catalyst for NVIDIAGenerative AI, spearheaded by advancements like OpenAI’s ChatGPT, has reshaped industries by automating and enhancing content creation, including text, images, audio and synthetic data. This technological revolution is transforming workflows across marketing, customer service and healthcare.Fortune Business Insights projects the global generative AI market to soar to $967.6 billion by 2032, growing at a compound annual growth rate (CAGR) of 39.6%. This extraordinary growth underscores the burgeoning demand for computational power, a need NVIDIA is uniquely equipped to meet.NVIDIA’s GPUs are the backbone of these transformative technologies, powering applications in sectors such as automotive, healthcare and manufacturing. As businesses increasingly adopt generative AI to modernize operations, NVIDIA’s state-of-the-art chips have become essential infrastructure, driving massive demand for its products.Given the surging demand for AI-driven technologies, NVIDIA is expected to report strong revenue growth in its upcoming earnings release. The company expects third-quarter fiscal 2025 revenues to reach $32.5 billion, driven by the increasing investments in AI within the datacenter market.This anticipated growth reflects not only the strength of NVIDIA’s product offerings but also the broader shift toward AI and advanced computational models across industries. As businesses continue to integrate AI into their operations, NVIDIA’s GPUs are becoming increasingly essential, driving demand and, consequently, revenue growth.Zacks Rank & Other Stocks to ConsiderCurrently, NVIDIA sports a Zacks Rank #1 (Strong Buy).Some other top-ranked stocks in the broader technology sector are CyberArk Software CYBR, Fortinet FTNT and Twilio TWLO, each sporting a Zacks Rank #1 at present. You can see the complete list of today's Zacks #1 Rank stocks here.The Zacks Consensus Estimate for CyberArk Software’s 2024 earnings has been revised 10 cents upward to $2.40 per share in the past seven days, which suggests a year-over-year increase of 114.3%. The company has an estimated long-term earnings growth rate of 20%.The Zacks Consensus Estimate for Fortinet’s 2024 earnings has been revised upward by 17 cents to $2.18 per share in the past 30 days, which calls for an increase of 33.7% on a year-over-year basis. The company has an estimated long-term earnings growth rate of 17.8%.The consensus mark for Twilio’s fiscal 2025 earnings has been revised upward by 6.7% to $3.64 per share over the past 30 days, which indicates a 48.6% increase from that reported in 2023. It has a long-term earnings growth expectation of 41.8%.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.7% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NVIDIA Corporation (NVDA): Free Stock Analysis Report Fortinet, Inc. (FTNT): Free Stock Analysis Report CyberArk Software Ltd. (CYBR): Free Stock Analysis Report Twilio Inc. (TWLO): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks