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Nvidia Q3 Earnings Report Sparks Crypto Sell-Off Despite Record Profits – Why?

Published by
Qadir AK

Nvidia Corporation (NASDAQ: NVDA), a global leader in semiconductor technology, delivered another blockbuster performance in its third-quarter fiscal 2025 results, released on Wednesday. The company’s revenue skyrocketed to $35.08 billion, marking a staggering 94% growth from the same period last year.

Nvidia’s profits for the quarter more than doubled, reaching $19.31 billion compared to $9.24 billion in the third quarter of 2024. The company reported earnings per share (EPS) of 81 cents, exceeding Wall Street’s estimate of 75 cents. Analysts had forecast revenue of $33.71 billion, highlighting Nvidia’s strong outperformance.

However, it’s not all smooth sailing. Amid record profits, Nvidia’s falling margins and its ripple effects on the AI-linked cryptocurrency market reveal a more complex story.

Nvidia Shareholders are Disappointed

Despite its stellar earnings, Nvidia faces tough competition in the semiconductor industry. Data from FactSet places Nvidia third among leading semiconductor companies in gross profit margins:

  • Arm Holdings tops the list with an exceptional 97% gross margin.
  • Broadcom follows with a 76.6% margin, bolstered by its software business.
  • Nvidia reported a 75% margin last quarter, though it saw a slight decline in Q3 and expects margins to dip further in Q4.

The slight margin decline and growing competition in the artificial intelligence (AI) space have sparked concerns among Nvidia’s investors. These midterm worries caused Nvidia’s stock price to drop by nearly 3% in the last 24 hours, with shares trading at approximately $142.

AI-Linked Crypto Market Reacts

Nvidia’s results also impacted the AI-linked cryptocurrency sector, which has shown a strong connection to the company’s earnings. Following the announcement, the AI crypto market cap fell by nearly 6%, hovering around $33.8 billion at the time of writing.

Several notable AI-focused cryptocurrencies experienced declines: Near Protocol (NEAR),Internet Computer (ICP), and Render (RENDER) lost around 5% over the past 24 hours.

Despite the downturn, a few AI-related tokens managed to defy the bearish trend: Bittensor (TAO), Arkham (ARKM), and Virtuals Protocol (VIRTUAL) posted gains of 2–5% during the same period.

FAQs

Why Is Nvidia Stock Going Down Today

Nvidia stock is down today due to concerns over declining profit margins, with the company forecasting further margin drops in the fourth quarter. Shareholder worries about increased competition in the AI industry have contributed to a nearly 3% drop in stock price.

While Nvidia’s earnings soar, the battle for dominance in AI technology is only heating up. The market will be watching closely!

Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

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