Nvidia’s $57B Quarterly Revenue: Business Strength vs. Price Dynamics

Nvidia reported a record $57 billion in quarterly revenue on November 18, 2025, marking 62% year-over-year (YoY) growth, with its data center segment leading at $51.2 billion (66% YoY growth) [0]. The company also provided strong guidance for the next quarter, projecting ~$65 billion in revenue with a 75% gross margin [0]. Despite these robust results, NVDA’s stock dropped 7.81% on November 20, 2025—a decline not driven by broader sector weakness (the technology sector was up 0.37532% that day) [0]. Market analyses attribute the drop to two key concerns: customer concentration risk (four customers accounted for 61% of total sales) and a doubling of rental agreements with cloud customers to $26 billion, which raised questions about revenue recognition and long-term demand stability [0].

A Reddit discussion published on November 28, 2025, further explored whether buying NVDA now is justified, with conflicting viewpoints. Bullish arguments emphasized the company’s reasonable forward price-to-earnings (P/E) ratio (~24x, depending on fiscal year calculations) and sustained growth outlook [0]. Bearish perspectives highlighted growing competition from Alphabet, AMD, Intel, and Chinese firms, which could erode NVDA’s market moat, coupled with concerns about high valuations [0]. Neutral participants noted that online finance communities often shift narratives based on recent price movements, and that NVDA’s unique fiscal year labeling causes confusion in forward P/E calculations, leading to varying estimates (24x FY2026 vs. 26x FY2027) [0].

As of December 1, 2025, NVDA was trading at $179.14 with a trailing P/E ratio of 44.34 and a market capitalization of $4.36 trillion [0].

1. Performance-valuation disconnect
   : NVDA’s strong financial results contrasted with its post-report stock decline, driven by under-the-surface risks (customer concentration, rental contract scaling) rather than growth slowdown [0].
2. Valuation confusion
   : NVDA’s non-traditional fiscal year labeling creates inconsistent forward P/E calculations, with Reddit users citing ranges of 24x–26x depending on the fiscal year referenced [0].
3. Reactive online sentiment
   : Reddit discussions revealed that retail investor narratives shift rapidly with short-term price movements, fluctuating between “reasonable valuation” and “bubble” characterizations [0].
4. Long-term competition risk
   : While NVDA currently dominates the AI hardware space, growing rival investments signal a structural threat to its market moat over time [0].

• Customer concentration
  : Four customers contribute 61% of sales, so lost business from one could significantly impact revenue [0].
• Competitive pressure
  : AMD, Alphabet, Intel, and Chinese firms are ramping up AI hardware development, risking reduced market share for NVDA [0].
• Rental contract volatility
  : Doubled rental agreements ($26 billion) raise uncertainty about future revenue recognition and customer retention [0].

• Sustained growth
  : The data center segment’s 66% YoY growth and $65 billion next-quarter revenue guidance indicate strong AI demand [0].
• High profitability
  : A projected 75% gross margin highlights NVDA’s pricing power and operational efficiency [0].
• Reasonable forward valuation
  : Bullish investors view the ~24x–26x forward P/E ratio as justified by the company’s growth outlook [0].

• NVDA reported $57B quarterly revenue (62% YoY) on November 18, 2025, with $51.2B from data centers (66% YoY) [0].
• Next quarter guidance: ~$65B revenue with 75% gross margin [0].
• Stock dropped 7.81% on November 20, 2025, due to concentration and rental contract concerns [0].
• Reddit debates include buy (reasonable forward P/E), sell (competition), and neutral (narrative shifts, fiscal year confusion) viewpoints [0].
• As of December 1, 2025, NVDA trades at $179.14 with a trailing P/E of 44.34 and $4.36T market cap [0].