Nvidia just reported Q3 results. The stock is falling.

Nvidia (NASDAQ:NVDA) shares fell roughly 3.5% in extended hours trading on Wednesday, even as the semiconductor giant reported fiscal third-quarter results and guidance that topped expectations.

Looking to the fourth-quarter of fiscal 2025, Nvidia expects to generate $37.5B in revenue, plus or minus 2%. Analysts were forecasting $37.1B in revenue for the Jensen Huang-led company.

For the period ending October 27, Nvidia said it earned an $0.81 per share on an adjusted basis as revenue surged 94% year-over-year to come in at $35.08B. Data center revenue flew past expectations, coming in at $30.8B, compared to estimates of $29.14B. Automotive revenue for the period clocked in at $449M, while professional visualization revenue rose 17% year-over-year to $486M.

Gaming revenue for the period was $3.3B, up 15% year-over-year, above the $3.06B estimate.

Adjusted gross margin came in at 75% for the quarter, in-line with estimates, while it generated $16.79B in free cash flow during the period.

Analysts were expecting the company to earn $0.74 per share on $33.25B in revenue during the second quarter.

“The age of AI is in full steam, propelling a global shift to NVIDIA computing,” said Jensen Huang, founder and CEO of NVIDIA. “Demand for Hopper and anticipation for Blackwell — in full production — are incredible as foundation model makers scale pretraining, post-training and inference.”

“AI is transforming every industry, company and country,” Huang added. “Enterprises are adopting agentic AI to revolutionize workflows. Industrial robotics investments are surging with breakthroughs in physical AI. And countries have awakened to the importance of developing their national AI and infrastructure.”

The company also said it sees the demand for Blackwell exceeding supply for several quarters in fiscal 2026. It will continue to ship both Hopper and Blackwell shipments in the coming fourth-quarter of fiscal 2025, though it expects both to have “certain supply constraints.”

Julian Lin, Investing Group Leader for Best Of Breed Growth Stocks, said Nvidia appears to be facing the “same mathematical reality.”

“Guidance implies a steep deceleration in YoY growth rates (decelerating from the triple-digit-level) but this makes mathematical sense given both the law of large numbers as well as the tough comparables,” Lin said. “NVDA may have been able to avoid such realities in the past due to unprecedented demand for its chips, but that period appears to be passing. I expect growth rates to decelerate meaningfully moving forward – it remains to be seen if the stock has already priced in such deceleration.”

Shares of other semiconductor companies, including AMD (AMD), ARM (ARM), ASML (ASML), Taiwan Semiconductor (TSM) and Intel (INTC) moved lower in after-hours trading following the results and guidance. Super Micro Computer (SMCI) also fell following Nvidia’s results.

In conjunction with the results, Nvidia said it would pay its quarterly dividend of $0.01 per share to shareholders on December 27, to all shareholders of record on December 5.

The company will hold a conference call at 5 p.m. EST to discuss the results.

(This story has been updated to include added commentary on Blackwell in the eight paragraph.)