Nvidia Surpasses $1,000 with $14.88B Q1 Earnings

Key Points

• Nvidia shares surpassed $1,000, driven by strong fiscal first-quarter results.
• The reported net income was $14.88 billion, with $5.98 per share.

Nvidia shares soared past $1,000 for the first time in extended trading on Wednesday, marking a significant milestone for the tech giant. This surge followed the company’s fiscal first-quarter results, which exceeded analyst expectations. For the quarter ending April 28, Nvidia reported a staggering net income of $14.88 billion, equating to earnings per share of $5.98. This was a dramatic increase from the previous year’s net income of $2.04 billion and earnings per share of 82 cents.

Nvidia Projects $28B Revenue, Stock Rises 7%

Nvidia’s revenue projections for the current quarter stand at $28 billion, surpassing Wall Street’s expectation of $26.61 billion. The company’s robust performance has led to a 7% rise in its stock during extended trading. Additionally, there are plans to split its stock 10 to 1, making it more accessible to a broader range of investors. Analysts anticipate that Nvidia shares will hit a fresh high on Thursday, further solidifying its status as a market leader.

Data Center Revenue Soars 427% to $22.6B

A significant contributor to Nvidia’s impressive financial performance is its data centre category, which saw revenues skyrocket to $22.6 billion, representing a 427% increase from the same quarter last year. This growth is largely attributed to the high demand for Nvidia’s Hopper graphics processors and H100 GPUs. The company’s networking segment also performed remarkably well, with revenues from InfiniBand products reaching $3.2 billion, more than tripling from the previous year.

AI Chips Drive $329M Automotive Revenue.

Nvidia’s product portfolio is diverse and innovative. The company’s current AI chips, such as the Hopper graphics processors and H100 GPU, are in high demand. Looking ahead, there is an expectation to generate substantial revenue from its next-generation AI chip, Blackwell, slated for release later this year. The company’s automotive segment also showed promise, with revenues reaching $329 million.

Nvidia Increases Dividend to 10 Cents After $7.7B Buyback

In the past quarter, Nvidia bought back $7.7 billion worth of its shares and paid $98 million in dividends. The company announced an increase in its quarterly cash dividend from 4 cents per share to 10 cents on a pre-split basis. This move reflects strong financial health and commitment to returning value to its shareholders.

Major Tech Firms Invest Billions in Nvidia GPUs

Nvidia’s growth is further bolstered by significant purchases from major tech companies, including Google, Microsoft, Meta, Amazon, and OpenAI. Companies investing billions in Nvidia’s GPUs highlight the crucial role of the broader tech ecosystem. With its cutting-edge products and strategic customer relationships, Nvidia continues to set new benchmarks in the industry.