NVIDIA (NASDAQ: NVDA) announced its financial results for the first quarter ended April 28, 2024, achieving a record quarterly revenue of $26.0 billion, representing an 18% increase from the previous quarter and an impressive 262% increase compared to the same period last year.
NVIDIA’s CEO and founder, Jensen Huang, emphasized the significance of this figure by stating, “The next industrial revolution has begun: companies and countries are partnering with NVIDIA to transform traditional data centers into accelerated computing centers, creating a new type of data center: AI factories, to produce a new commodity: artificial intelligence.”
Significant Increase in Data Center Segment
One of the highlights of the quarter was the growth in the data center segment, which recorded record revenues of $22.6 billion, a 23% increase from the previous quarter and a remarkable 427% increase from the previous year. This growth was driven by strong and growing demand for generative AI training and inference on NVIDIA’s Hopper platform.
“Our data center growth was driven by the strong and accelerated demand for generative AI training and inference on the Hopper platform. Beyond cloud service providers, generative AI has expanded to consumer internet companies, enterprises, sovereign AI, automotive and healthcare customers, creating multiple multi-billion-dollar vertical markets,” added Huang.
Expansion and New Product Offerings
NVIDIA announced the launch of the Blackwell platform, which is in full production and forms the basis for trillion-parameter generative AI at scale. Additionally, the Spectrum-X series opens up a new market to bring AI at scale exclusively Ethernet data centers. The company also introduced NVIDIA NIM, a new software offering that delivers enterprise-grade generative AI optimized to run on CUDA everywhere, from the cloud to local data centers and RTX AI PCs.
Stock Split and Dividend Increase
NVIDIA announced a ten-to-one stock split, which will take effect on June 7, 2024, with the aim of making share ownership more accessible to employees and investors. Every registered shareholder of common stock at the close of market on June 6, 2024, will receive nine additional shares, distributed after market close on June 7, 2024. Trading will commence on a split-adjusted basis on June 10, 2024.
Additionally, NVIDIA will increase its quarterly cash dividend by 150%, from $0.04 per share to $0.10 per share of common stock. This increased dividend is equivalent to $0.01 per share on a split-adjusted basis and will be paid on June 28, 2024, to all shareholders of record as of June 11, 2024.
First Quarter Fiscal 2025 Financial Summary
In terms of earnings, NVIDIA reported a GAAP diluted earnings per share of $5.98, a 21% increase from the previous quarter and a 629% increase from the previous year. Non-GAAP diluted earnings per share were $6.12, a 19% increase from the previous quarter and a 461% increase from the previous year.
Key Financial Results for the First Quarter Fiscal 2025:
– Revenue: $26.044 billion (GAAP and non-GAAP)
– Gross margin: 78.4% (GAAP) and 78.9% (non-GAAP)
– Operating expenses: $3.497 billion (GAAP) and $2.501 billion (non-GAAP)
– Operating income: $16.909 billion (GAAP) and $18.059 billion (non-GAAP)
– Net income: $14.881 billion (GAAP) and $15.238 billion (non-GAAP)
– Diluted earnings per share: $5.98 (GAAP) and $6.12 (non-GAAP)
Second Quarter Fiscal 2025 Outlook
For the second quarter of fiscal 2025, NVIDIA expects revenues of approximately $28.0 billion, with GAAP and non-GAAP gross margins of 74.8% and 75.5% respectively. GAAP and non-GAAP operating expenses are estimated to be approximately $4.0 billion and $2.8 billion, respectively.
In summary
NVIDIA continues to demonstrate robust growth and significant expansion in multiple market segments, with a particular focus on generative AI and data centers. The recent product innovations and commitment to expanding technological capabilities position NVIDIA as a leader in the next era of accelerated computing.
Source: Nvidia News (https://nvidianews.nvidia.com/news/nvidia-announces-financial-results-for-first-quarter-fiscal-2025)