The post Nvidia Stock Drops After Q3 Earnings Highlight Midterm Margin Challenges appeared first on Coinpedia Fintech News
On Wednesday, Nvidia Corp. (NASDAQ: NVDA), a leading multinational tech company focused on the development of semiconductors, released results for its third quarter fiscal 2025. According to the announcement, Nvidia registered a revenue of $35.08 billion, up 94 percent from $18.12 billion a year ago.
The company highlighted that it earned $19.31 billion in the quarter, more than double the $9.24 billion it posted in last year’s third quarter. As a result, the company reported earnings per share of 81 cents, while Wall Street analysts expected an EPS of 75 cents on revenue of around $33.71 billion.
Nvidia Shareholders are Disappointed
According to data from FactSet, Nvidia currently ranks in the third position 3 among the top semiconductor companies in terms of gross profit margins. Arm Holdings, a semiconductor company that licenses its intellectual property, has 97 percent margins.
Broadcom, a semiconductor-focused company with a bigger software business, has 76.6 percent margins. Meanwhile, Nvidia reported a 75 percent margin during the last quarter, saw margins fall slightly in its fiscal third quarter, and forecast them to fall again in the fourth quarter.
As a result, Nvidia’s shareholders have expressed midterm concerns amid heightened competition in the AI industry.
Consequently, the NVDA stock market dropped nearly 3 percent in the last 24 hours to trade at about $142.
Impact on AI-related Crypto Projects
After Nvidia reported crushing earnings estimates in the fourth quarter, the optimism in AI-related crypto projects significantly declined. Moreover, the AI-related crypto tokens have shown a significant relationship with Nvidia’s quarterly earnings.
According to the latest data, the artificial intelligence (AI) market cap dropped by nearly 6 percent to hover about $33.8 billion at the time of this writing. Near Protocol (NEAR), Internet Computer (ICP), and Render (RENDER) registered a loss of around 5 percent in the last 24 hours.
Meanwhile, Bittensor (TAO), Arkham (ARKM), and Virtuals Protocol (VIRTUAL) defied the bearish sentiment by registering gains of between 2 and 5 percent in the last 24 hours.