NVIDIA Corp Q3 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: CJ Muse - Cantor Fitzgerald & Co. - Analyst : Good afternoon. Thank you for taking the question. I guess just a question for you on the debate around whether scaling for large language models have stalled. Obviously, we're very early here, but would love to hear your thoughts on this front. How are you helping your customers as they work through these issues? And then obviously part of the context here is we're discussing clusters that have yet to benefit from Blackwell. So is this driving even greater demand for Blackwell? Thank you.

Question: Toshiya Hari - Goldman Sachs & Company, Inc. - Analyst : Hi, good afternoon. Thank you so much for taking the question. Jensen, you executed the mask change earlier this year. There were some reports over the weekend about some heating issues. On the back of this, we've had investors ask about your ability to execute to the road map you presented at GTC this year with Ultra coming out next year and the transition to Rubin in '26. Can you sort of speak to that? And some investors are questioning that. So if you can sort of speak to your ability to execute on time, that would be super helpful. And then a quick part B, on supply constraints, is it a multitude of componentry that's causing this or is it specifically, CoWoS HBM? Is the supply constraint -- are the supply constraints getting better? Are they worsening? Any sort of color on that would be super helpful as well? Thank you.

Question: Timothy Arcuri - UBS Securities LLC - Analyst : Thanks a lot. I'm wondering if you can talk about the trajectory of how Blackwell is going to ramp this year. I know Jensen, you did just talk about Blackwell being better than I think you had said several billions of dollars in January, sounds like you're going to do more than that. But I think in recent months also, you said that Blackwell crosses over Hopper in the April quarter. So I guess I had two questions. First of all, is that still the right way to think about it, that Blackwell will cross over Hopper in April? And then collect you kind of talked about Blackwell bringing down gross margin to the low 70s as it ramps. So I guess if April is the crossover, is that the worst of the pressure on gross margin? So you're going to be kind of in the low 70s as soon as April, I'm just wondering if you can sort of shape that for us. Thanks.

Question: Vivek Arya - BofA Global Research - Analyst : Thanks for taking my question. Could I just to clarify, do you think it's a fair assumption to think NVIDIA could recover to kind of mid 70s gross margin in the back half of calendar '25? Just wanted to clarify that. And then, Jensen my main question, historically, when we have seen hardware deployment cycles, they have inevitably included some digestion along the way. When do you think we get to that phase or is it just too premature to discuss that, because you're just the start of Blackwell? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 20, 2024 / 10:00PM, NVDA.OQ - Q3 2025 NVIDIA Corp Earnings Call So how many quarters of shipments do you think is required to kind of satisfy this first wave? Can you continue to grow this into a calendar '26. Just how should we be prepared to see what we have seen historically, right? The periods of digestion along the way of a long-term kind of secular hardware deployment?

Question: Stacy Rasgon - Bernstein Institutional Services LLC - Analyst : Hi guys. Thanks for taking my questions. Colette, I had a clarification and a question for you. The clarification just, when you say low 70s gross margins, does 73.5 count as low 70s or do you have something else in mind? And for my question, you're guiding total revenues and so, I mean total data center revenues in the next quarter must be up, quote unquote several billion dollars, but it sounds like Blackwell now should be up more than that. But you also said Hopper was still strong. So like is Hopper down sequentially next quarter. And if it is, like why? Is it because of the supply constraints? Is -- China's been pretty strong as China is kind of rolling off a bit into Q4. So any color you can give us on sort of the Blackwell ramp and the Blackwell versus Hopper behavior into Q4 would be really helpful. Thank you.

Question: Joseph Moore - Morgan Stanley & Co. LLC - Analyst : Great. Thank you. I wonder if you could talk a little bit about what you're seeing in the inference market. You've talked about Strawberry and some of the ramifications of longer scaling inference projects. But you've also talked about the possibility that as some of these Hopper clusters age that you could use some of the Hopper latent chips for inference. So, I guess, do you expect inference to outgrow training in the next kind of 12-month time frame? And just generally your thoughts there.

Question: Aaron Rakers - Wells Fargo Securities, LLC - Analyst : Yeah, thanks for taking the question. I wanted to ask you as we kind of focus on the Blackwell cycle and think about the data center business, when I look at the results this last quarter, you know Colette you mentioned that obviously the networking business was down about 15% sequentially. But then your comments were that you were seeing very strong demand. You mentioned also that you had multiple cloud, CFP design wins for these large-scale clusters. So I'm curious if you could unpack what's going on in the networking business and where maybe you've seen some constraints and just your confidence in the pace of Spectrum-X progressing to multiple billions of dollars that you previously had talked about. Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 20, 2024 / 10:00PM, NVDA.OQ - Q3 2025 NVIDIA Corp Earnings Call

Question: Atif Malik - Citigroup Global Markets Inc. - Analyst : Thank you for taking my question. I have two quick ones for Colette. Colette, on the last earnings call, you mentioned that Sovereign demand is in low double-digit billions. Can you provide an update on that? And then can you explain the supply constrained situation in gaming? Is that because you're shifting your supply towards data center?

Question: Ben Reitzes - Melius Research LLC - Analyst : Yeah, hi. Thanks a lot for the question. I wanted to ask Colette and Jensen with regard to sequential growth. So very strong sequential growth this quarter and you're guiding to about 7%. Do your comments on Blackwell imply that we reaccelerate from there as you get more supply. I just -- in the first half it would seem that there would be some catch up. So I was wondering how prescriptive you could be there. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 20, 2024 / 10:00PM, NVDA.OQ - Q3 2025 NVIDIA Corp Earnings Call And then Jensen just overall, you know, with the change in administration that's going to take place here in the US and the China situation. Have you gotten any sense or any conversations about tariffs or anything with regard to your China business? Any sense of what may or may not go on? It's probably too early but wondering if you had any thoughts there? Thanks so much.

Question: Pierre Ferragu - New Street Research LLP - Analyst : Hey, thanks for taking my question. Jensen, you mentioned in your comments, you have the pre-trainings, the actual language models and you have reinforcement learning that becomes more and more important in training and in inference as well. And then you have inference itself. And I was wondering if you have a sense, like a high-level typical sense of out of an overall AI ecosystem, like maybe one of your clients or one of the large models that are out there. Today, how much of the compute goes into each of these buckets, how much for the pretraining, how much for the reinforcement and how much into inference today. Do you have any sense for how it's splitting and where the growth is the most important as well?

Question: Pierre Ferragu - New Street Research LLP - Analyst : Thank you.