Historical financial result review
We've observed that NVIDIA's revenue and EBIT have both experienced year-over-year and quarter-over-quarter growth, albeit with a deceleration in year over year growth rates. For instance, the revenue growth rate has slowed from 205.5% in Q3 FY24 to 93.6% in Q3 FY25, and the EBIT growth rate has dropped from 1237.3% in Q3 FY24 to 108.2% in Q3 FY25. Concurrently, NVIDIA's gross profit margin (GPM) and operating profit margin (OPM) had been rapidly increasing, reaching peaks of 76%, 62.2%, and 55.6% respectively before Q1 FY25, and have since gradually declined starting from Q2 FY25.
Quarterly result overview
Source: Routers, Tradingkey.com
Therefore, Q2 FY25 marked a turning point, as the company's performance post this quarter indicated a slowdown in revenue growth and a decline in profit margins. We observed the stock price and market consensus expectations for the next three fiscal years surrounding the release of this earnings report and found that:
1) Following the Q2 FY25 earnings release, the stock price declined by...