News
Nvidia announces stock split and surpasses earnings in the first quarter
Nvidia (NVDA) made a lot of headlines when it published its fiscal 2025 first-quarter results.
The technology giant reported adjusted earnings per share of $6.12 versus the Street estimate of $5.65. Revenue of $26.04 billion was better than the Bloomberg consensus of $24.69 billion and increased 262% year-over-year.
Data center revenue increased 427% year over year to $22.6 billion, beating expectations of $21.13 billion.
Nvidia also announced a 10-for-1 stock split that will take place after the market closes on June 7. The company is also increasing its dividend from $0.04 to $0.10, which the company says is equivalent to $0.01 per post-split share.
For the second quarter, Nvidia expects to report revenue of $28 billion, plus or minus 2%, compared to the $26.6 billion estimate.
Yahoo Finance Julie Hyman, Dan Howley It is Josh Lipton detail Nvidia’s latest quarterly report.
For more expert insights and the latest market action, click here to watch this full episode of Asking for a Trend.
This post was written by Stephanie Mikulich.
Video transcript
And the video did it again.
Chip giants surpassing analysts’ expectations in their strong fiscal first quarter, the chip giant hit the top and the end result is revenue of $26.04 billion.
That’s against the estimate of 24.69 billion adjusted earnings per share, coming in at $6.
12 cents.
The company also gave another optimistic sales forecast, showing that spending on AI computing is paying off. Second quarter revenue will be around 28 billion.
Analysts predicted more than 26.8 billion on top of all that.
But also announcing a 10 for a forward stock split and increasing its dividend.
Julie Aman Dan Halley is here with the conclusions, you know, guys, you went into this impression and everyone was on the same side of the boat.
90% of analysts had to buy, you know, sometimes the herd can be right, Dan Halley.
Yeah, I mean, look, I guess I’m just looking at this now, not for the first time I’m talking about this, but I just want to quickly, very, very quickly point out that obviously the data center business easily the more important.
But I just want to talk about the gaming business real quick, because now they’re referring to it as PC gaming and AI.
And if you’ve been following what’s going on with Microsoft, Qualcomm, Intel A MD, everyone is talking about this new generation of P CS A IP CS Microsoft, I was in Washington and we had a big event for this.
Now, Invidia pointing to a CS IP, they also want to participate in this action.
Uh Great partner for Microsoft, but, but the gaming business is not the most important.
The story continues
It’s clearly a data center.
And I just want to highlight the company’s revenue share, 86% of the company’s total revenue in the quarter came from data center revenue.
This is a company focused on gaming cars.
Just a few years ago, you go back to 2021, less than half of that was the share of total revenue, as we talked about before.
So it’s incredible.
You mentioned gaming there and I was interested to see the sequential change in the various segments here.
The data center obviously grew huge year over year, over 400% in the quarter, up from the still very respectable 23% quarter.
Network revenue is down 5% year over year, quarter quarter down by uh, 8%.
And they attribute this to seasonally lower sales of GP U for professional laptop viewing.
That’s another part of the business that’s down 8% quarter-over-quarter, and automotive is another bright spot, even though it’s up 17% quarter-over-quarter.
So it’s interesting to look at how we see this huge growth and what does it look like?
Quarter after quarter?
What kind of momentum is there behind some of these deals?
Yes definitely.
Yes, I was thinking about how to get into printing.
We were talking about some of the topics, the themes and we were talking about, listen, everyone we knew would go straight to the data center as soon as it arrived and there was this kind of narrative being built out there.
Well, what if, because you had a new black GP U PLA platform along the way and, perhaps, customers, they delayed, stopped because they were waiting for the shiny thing.
It didn’t feel like it happened, it doesn’t feel like it’s happening.
And I, I think, you know, they’re projecting those revenues for the next quarter, that 28 billion give or take uh 2% you know, beating the 26.6 that analysts were expecting.
Blackwell chips won’t be released until the end of the year, right?
So that’s something I think you start to look at.
OK. Well, if they continue to see that, that kind of revenue.
What does that mean?
When you know the big shiny, more expensive piece comes out and you know, one of the things that they, that, that during the GTC that Jensen really uh kind of pushed was the new uh blackwell, the uh GB 200 chip, these are the two Blackwell chips, uh and the gray chip, kind of fused into the super chip which is going to be quite expensive.
So you have to imagine that once this starts selling, where will the revenue go from there?
And, one more thing we noticed in the statement here is that Jensen points out who the data center’s customers are, which is important here.
He talks about this beyond cloud service providers.
Generative AI expands to consumer internet companies, Enterprise Sovereign AI Automotive, and healthcare customers.
Um, he says creating multiple multi-billion dollar vertical markets.
And as Dan and I talked about offline, this is important because maybe there was concern that they were too reliant on so-called hyperscalers, Jensen very focused saying we serve too many people.
Yes, but Colette, the CFO, and her statement saying that still 40% of that data is from those hypercloud giants.
Thank you both very much.
Appreciate it.