NVIDIA Announces Financial Results for Third Quarter Fiscal 2025
Posted by BarKnight@reddit | hardware | View on Reddit | 78 comments
Posted by BarKnight@reddit | hardware | View on Reddit | 78 comments
rstune@reddit
Gross margin of 73.5% tells you all you need to know about his much they're overcharging
ThankGodImBipolar@reddit
How can you claim that they’re overcharging when their competitors are practically giving away their products in comparison but are still losing marketshare? People aren’t paying extra money for nothing.
(not an Nvidia fan to be clear)
zippopwnage@reddit
What competitors are giving away their products? Last time I checked, in my country at least, AMD counter part of Nvidia cards are around 100$ less at most. So of course people gonna buy an nvidia which most of the time may have better tech.
ThankGodImBipolar@reddit
The 7900XTX was 200 dollars less than the 4080 at MSRP, despite (allegedly) being more expensive to make. I think the situation is even worse in the data center. Maybe the situation is slightly better in the low end, but there’s much less margin in that segment in the first place.
SolaceInScrutiny@reddit
I know I'll get blown up for this but hatt price disparity exists because they are not equivalent products. Nvidia is far ahead in terms of value adds and refinement.
AffectionatePound383@reddit
Yeah at this point with how many games are coming with ray tracing forced plus dlss anything amd makes would have to be far far cheaper for me to consider it. At much lower brackets I can understand it but man giving up dlss is a rough sell.
Dressieren@reddit
The biggest benefit to AMD is that their biggest selling points could be swung by the community. DLSS is great and AMD has two different competitors with FSR and fidelityFX. Both of which are open source and have GitHub repos. AMD also has quite a few open source GPU drivers and are quite helpful to the community. If a community wants to see something do well and they have the skills it can and will find a way to be done.
Nvidia is just behind on that front with their drivers just this year moving to an open source driver for Linux.
Another thing is driver issues that still has a bad taste in people’s mouths. AMD has had quite a few bad driver releases or just weird driver issues in the past and so has Nvidia but the internet hivemind focuses in on AMDs failures which mostly took place before the adrenaline software dropped which was still somewhat fresh after the purchase of ATI.
ResponsibleJudge3172@reddit
And despite for a year 4080 super MSRP being equivalent (with 7900XTX selling somewhat but not consistently below), Nvidia margins stayed the same and AMD margins went down.
This obviously means that margins are 99% reflecting the data center market and almost have nothing to do with the gaming GUs that sell a small fraction of the revenue
CalmSpinach2140@reddit
The 4080 is more expensive as it only uses N4, where the 7900XTX uses N5 and N6
From-UoM@reddit
4080 is 4N which is a custom N5 node
4N and N4 are not the same. They are both variants of the N5 node.
ThankGodImBipolar@reddit
I can only find this Hardwaretimes article about the subject but it seems to support what I’ve said.
CalmSpinach2140@reddit
Depends, it doesn’t factor in the cost of N4 and the more expensive GDDR6X
TwelveSilverSwords@reddit
Nvidia's margins are coming from datacenter, not gaming.
ThankGodImBipolar@reddit
That’s what I said; the situation is even worse in the datacenter. The same pattern is occurring top-down though.
shimszy@reddit
Intel certainly does.
PaulTheMerc@reddit
Got a link? I need an upgrade
shimszy@reddit
Their GPUs are certainly sold at a loss overall (if not for the bill of materials, definitely after R&D). But the question is whether you want them.
DehydratedButTired@reddit
Because it’s a gross margin when you take it all on its own. They don’t care how much they sell, they care how much they sell it for and they keep the price artificially high by tightly controlling stock release.
Oafah@reddit
Business is not a social service. They have something people want, and people are clearly willing to pay for it.
jv9mmm@reddit
Well according to supply and demand if a product is sold out it is priced too low. And Nvidia's data center GPUs have been completely sold out. If anything Nvidia is undercharging.
ExtendedDeadline@reddit
Thank god they don't do this in America for stuff like medicine! Only basic needs like on things like LLMs.
VenditatioDelendaEst@reddit
Indeed. Demand for medicine is effectively infinite because people are dumb and will gladly bankrupt themselves for a chance at one more day of life or (relative) health. In our enlightened land it is properly illegal to spend too much on medicine.
(Not saying there's a clear answer here, but I have rephrased the commie brainrot in a way to make it obvious that there is no clear answer here.)
Nether-state@reddit
Better die to own the capitalist lol
4514919@reddit
No, gross margin tells you nothing.
CJKay93@reddit
How does a high profit margin mean somebody is overcharging for something? Things are worth what people are willing to pay for them; high-performance gaming graphics cards are a luxury product.
teh_drewski@reddit
Basic human rights like gaming GPUs shouldn't be subject to corporate profiteering!
Leave that to luxuries like housing, food and healthcare.
3ebfan@reddit
It’s not overcharging if people are paying
StickiStickman@reddit
Those things aren't mutually exclusive at all.
3ebfan@reddit
They actually are mutually exclusive and the reason is supply and demand. If they were overcharging then demand would go down, but demand just keeps increasing.
They could be charging even more.
GenZia@reddit
Supply and demand rules don't apply to companies like Apple and as of late, Nvidia.
In they thrive in their own bubble of exclusivity, practically immune to external market trends.
Why else, do you think, women pay thousands of dollars for... I dunno, Prada bags?!
Exclusivity, bragging rights, virtue signaling, take your pick.
Edgaras1103@reddit
People don't buy 4090 for bragging rights or status.
zacker150@reddit
It absolutely is.
Golbar-59@reddit
Let's say a child abductor abducts a child and asks for a ransom. The parents pay the ransom and get the child back.
Did the parents overpay for their child? Yes, because the child didn't have a reasonable justification to be abducted in the first place.
The moral of the story is the people can be willing to pay for something even if the price lacks a reasonable justification. In general, it's the result of an extortion, where a threat is given to incentivise making the payment.
Nvidia is also committing a form of extortion, but it's a lot more difficult to understand why than a child abduction.
zacker150@reddit
Nvidia is literally selling a money printer. Customers are lining up for gpus because they can make boatloads of money using them. Why shouldn't NVIDIA get a tiny portion of the value their products generate?
GenZia@reddit
That's exactly what a monopolistic company would say.
shalol@reddit
Scalpers aren’t overcharging either if people are paying their prices, by that logic
Bombadilo_drives@reddit
Swing and a miss.
azn_dude1@reddit
I know most people are mostly talking about gaming here but it's such a small part of their financial report.
Adromedae@reddit
Overcharging?
BarKnight@reddit (OP)
Of course what we care about....
No_Resolve608@reddit
nvdia gaming sector only 9.4% of their Q3 revenue（in 2021 it worth 46% of nvdia totallyrevenue), i guess nextyear, the gaming sector will be only 5% of nvdia totally revenue.
pmjm@reddit
I honestly wouldn't be surprised to see the % of gaming go down next year. Not because gaming is shrinking but because datacenter is exploding.
NeroClaudius199907@reddit
Dc is exploding right now and increasing gaming rev. Its almost like not everyone can access these products so they go for the next best thing.
RawbGun@reddit
I'm actually genuinely surprised it's that much considering how many (and how expensive) data center/ML GPUs they've been selling for the past 2 years and that we're at the end of a 2-year long gen for gaming GPUs
rstune@reddit
At this point they're just doing us a favor by using their fab allocation on gaming. They would make a lot more if they used it for their data center products!
We should be eternally grateful to Jensen and be glad they're not charging even more for GPUs!
jigsaw1024@reddit
Nvidia is not fab limited in their ability to make data center products.
Nvidias' biggest bottlenecks are packaging and final assembly.
The 50 series still being a monolithic design may be a little blessing in disguise for gamers, as anything chiplet or tile based would be competing with data center for packaging.
imaginary_num6er@reddit
Honestly Jensen is the biggest supporter of gamers since if he was not the CEO, Nvidia would not be making gaming cards now and technologies like DLSS and RTX would not be available as an option.
Adromedae@reddit
Some of y'all seem to confuse this sub with r/gaming.
tukatu0@reddit
Pretty sure thats a troll
randomkidlol@reddit
the 46% was inflated because they lumped crypto GPU sales with gaming. they were already fined, and are currently being sued for it.
https://www.aljazeera.com/economy/2022/5/6/nvidia-pays-5-5m-us-fine-over-crypto-mining-disclosures
https://finance.yahoo.com/news/nvidia-tells-us-supreme-court-173420757.html
norcalnatv@reddit
Come on Mods. Remove this now.
Just like every other Nvidia related post that isn't strictly about your very narrow definition of what appropriate.
OP no offense
Top_Independence5434@reddit
For some reason earning report is considered hardware-related for this subs.
I call this out long ago, but the other doesn't took that kindly. Even some tech news outlet that this subs look down upon doesn't post financial news.
I guess Reddit will always be Reddit.
peternickelpoopeater@reddit
I am quite interested to see this as I keep waiting to see when the big customers of NVIDIA might start making them in-house. Given that the margins NVIDIA is charging is 60%+.
ResponsibleJudge3172@reddit
They already have long made chips in house. Nvidia just aims to be better than them in turn.
Look at Tesla Dojo Google with 5 generations of in house accelrators Amazon with several gens of accelerators
ResponsibleJudge3172@reddit
And the AMD ones too. And Intel for that matter
rohitandley@reddit
Well done nvidia. Invest in it lads. Use its profit to buy your next gpu
No_Resolve608@reddit
NVidia gaming sector up 15% compared to a year ago, mean while AMD gaming sector down 69% compared to a year ago, now NVidia gaming sector revenue is 7.14 times of AMD gaming sector revenue. Consider the AMD gaming sector, which is mainly console soc, and NVIDIA, which is mainly RTX GPUs. The revenue of the RTX GPU should be 20 to 30 times larger than the revenue of the radeaon GPU. From those reports, we should say Nvidia dominance in the gaming GPU is history record high, and the AMD Radeon GPU sector is struggling to compile Nvidia.
kingwhocares@reddit
Nvidia is also making the GPU for Switch 2. You can expect that to contribute to gaming GPUs increase.
scrndude@reddit
Does their gaming sector not include the x3D processors?
No_Resolve608@reddit
No, only radeon gpu and customer soc like console and steam deck soc, X3D processors belong to the AMD client sector, and this sector growth in Q3 too.
TheJohnnyFlash@reddit
Basically anything that was ATi.
Vb_33@reddit
AMD ruined ATI. Can you believe how much ATI was worth in 2006 compared to how much Radeon is worth now?
No-Actuator-6245@reddit
ATI was shit. There drivers and support made the hardware nearly unusable. The worth of AMD is 15+ years of being behind NVidia and NVidia developing faster and to date blocking AMD from getting even 1 foot ahead.
auradragon1@reddit
Considering that Radeon turned into CDNA as well, I’m guessing ATi is worth considerably more now than when AMD bought it.
Most of AMD’s stock market speculation is that they’re positioning themselves as #2 in AI GPUs after Nvidia and that has everything to do with ATi purchase.
ExtendedDeadline@reddit
Isn't AMD's gaming revenue tied to consoles too?
My other theory:
Whales buy Nvidia and they're not price sensitive, also AI junkies. Nvidia charges more, they pay more, they make more revenue.
Amd caters to more budget segments. Budget people are more stretched financially. So they buy less. So AMD rev goes down?
JimmyJuly@reddit
From the comment you're responding to:
"Consider the AMD gaming sector, which is mainly console soc..."
Your question was answered before you asked it.
Neofarm@reddit
Blackwell doesn't seem to ramp well due to overheating problem. Revenue growth overall is slowing despite "insane" demand. This might be the top for Nvidia for a while.
Long_Restaurant2386@reddit
Your knowledge of that "overheating problem" clearly didn't come from anything but the headline.
Neofarm@reddit
I started to put things apart & together for a living about 20 years ago. So i believe i should know a thing or 2.
poopnip@reddit
This is r/hardware
Who here isn’t taking things apart and putting them together?
Neofarm@reddit
I know right. My eyes got so weak lately i have to use microscope to do it ;-)
Long_Restaurant2386@reddit
Too bad your computer building skills didn't teach you how to read and article.
From-UoM@reddit
Increase is the same. Rate has been slowing because % decreases with higher values.
Lets say you add 4 billion each quarter.
10 to 14 billion is 40% more
14 to 18 billion is 28% more
18 to 22 billion is 22% more
22 to 26 billion is 18% more
26 to 30 billion is 15%
Same increase, decreasing growth.
30 needs go to 42 billion to get thag 40% back but that impractical.
BausTidus@reddit
Outlook is 37.5 billion for next quarter is propably what he is talking about.
From-UoM@reddit
Nvidia outlook has been beaten by huge amounts every time.
Q3 was initially 32.5 billion. Actual was 35.1 billion. Watch Q4 land between 39-40 billion.
Another point is that nvidia expects gaming to decrease due to supply decrease. This lines with the 40 series supply decrease to make room for the RTX 50 series launch in January
IshTheFace@reddit
The book cooking continues.
NeroClaudius199907@reddit
Lovelace is selling well even though everyone at r/gaming got priced out. 5060 8gb is going to hit bigly. But in all honesty, its over Jensen won. Once he gets his arm cpu for consumer & woa becomes good, theres nothing stopping him.
b-maacc@reddit
Dolla dolla bills ya’ll