The much-awaited chip maker NVIDIA Corp.’s (NASDAQ: NVDA) fiscal 2025 first quarter results were published after the markets closed on Wednesday. The manufacturer of chips powering AI systems reported better than anticipated top- and bottom-line results. Specifically, the company’s revenues and profits rose by 268% and 628% on a y-o-y basis, respectively.
The company also announced a 150% rise in quarterly cash dividends while issuing a robust Q2 outlook. To improve liquidity, Nvidia also announced a 10-to-1 stock split. For the first time in its history, the shares of Nvidia crossed the $1,000 mark to close at $1,037.99, up $88.49, or 9.32%, from the prior close. With a market cap of $2.553 trillion, the company is now the third most valuable company listed on the Nasdaq, behind Microsoft and Apple.
The Santa Clara, California-based company reported first-quarter revenues of $26.04 billion, an increase from $7.19 billion in the similar quarter of fiscal 2024.
For the initial quarter concluding on April 28, 2024, Nvidia recorded net income of $14.88 billion, or $5.98 per share, compared with $2.04 billion, or $0.82 per share, in the first quarter that ended April 30, 2023.
Excluding stock-based compensation expense, acquisition-related and other costs, and gains and losses from non-affiliated investments, among others, Nvidia posted 1Q 2025 non-GAAP net income of $15.24 billion, or $6.12 per share, an increase from $2.71 billion, or $1.09 per share in 1Q 2024.
Analysts surveyed by LSEG anticipated Nvidia to report earnings of $5.59 per share on revenues of $24.65 billion.
Commenting on the quarterly results, Jensen Huang, founder and CEO of NVIDIA, stated: “The next industrial revolution has begun — companies and countries are partnering with NVIDIA to shift the trillion-dollar traditional data centers to accelerated computing and build a new type of data center — AI factories — to produce a new commodity: artificial intelligence.”
Segment wise:
- Data Center revenues surged 427% y-o-y to $22.60 billion.
- Gaming and AI PC revenues were $2.60 billion, an increase of 18% from last year.
- Professional visualization revenues increased 45% y-o-y to $427 million. This segment supplies chips for advanced graphics systems.
- Automotive and Robotics revenues were $329 million, up 11% on a y-o-y basis. This division supplies chips for car manufacturers.
The CEO revealed that the company’s next-generation AI GPU, named Blackwell, is expected to fuel further growth. The new chip is anticipated to be available in data centers by 4Q 2025.
Looking forward, the company projects Q2 revenues of $28 billion. Analysts surveyed by LSEG anticipated Nvidia to report earnings of $5.95 per share on revenues of $26.61 billion.
The manufacturer of graphics processing units (GPU) revealed that it repurchased $7.70 billion worth of shares during the quarter. This is in addition to the payment of $98 million in the form of cash dividends.
Nvidia also stated that each shareholder, as of the close of the market on Thursday, June 6, 2024, will receive nine additional shares of common stock. These shares will be distributed after the market closes on June 7, 2024. Trading is anticipated to begin on a split-adjusted basis on June 10, 2024.
NVIDIA also upwardly revised the dividend paid out each quarter to $0.10 per share from $0.04 per share. On a post-split basis, the revised dividend, payable on June 28, 2024, equals $0.01 per share.
The quarterly earnings beat, solid Q2 guidance, and increased dividend are expected to keep the stock of Nvidia slightly bullish in the near term.
Technically, the stock of Nvidia is rising after breaking the ascending triangle formation. The stock is trading above its 50-day moving average, while the MACD indicator is showing a positive reading. Therefore, we anticipate Nvidia’s stock to remain in an uptrend in the near term.
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