Nvidia never ceases to amaze by communicating for the umpteenth time profits and revenues better than expected and confirming the rumors about a new stock split that had been circulating on Wall Street in recent months.
In addition to disclosing the numbers relating to its first fiscal quarter of 2025 which ended last April 28, Big Tech USA is an illustrious member of the exclusive club of the Magnificent 7 in fact, he made the big announcement about a 10-for-1 stock split plan.
The surprises don’t end there, as the chip giant is benefiting from the great AI fever exploded on the markets he also announced an increase in dividends equal to +150%.
Nvidia: Q1 earnings and revenues beat consensus estimates
Let’s look at Nvidia’s numbers, which highlighted, in addition to the solidity of the American Big Tech business, the boom in AI (artificial intelligence).
The chip giant announced that it ended its first fiscal quarter with net income of $14.81 billion, or $5.98 per share: a dream number, if you consider that, in the same period of 2023, profit stood at $2.04 billion, or 82 cents per share.
GAAP earnings per share (diluted) jumped 629% year-over-year, rising by 21% compared to the previous quarter.
Boom for too the adjusted undiluted EPS, soared on an annual basis by 461% to 6.12 dollars, well above the $5.59 on an adjusted basis expected by analysts consulted by LSEG.
Staggering numbers also for revenues, which jumped 262% year-on-year to $26 billion, doing better than the $24.65 billion consensus estimate, up 18% compared to the previous quarter.
“The new industrial revolution has arrived – companies and countries are launching partnerships with Nvidia to transform traditional trillion-dollar data centers to accelerated computing, to build a new type of data center – AI factories – in order to produce a new commodity: artificial intelligence”commented the CEO and founder of Nvidia Jensen Huang, according to what we read in the press release with which the group announced the accounts.
“AI – continued Huang – will translate into significant productivity gains in almost every industryhelping companies be more cost and energy efficient, and expand revenue opportunities.”
The guidance, i.e. the outlook churned out by the semiconductor giant, is positive: Nvidia has announced its forecast for the current quarter revenues of $28 billion, in addition to the $26.61 billion expected by analysts.
The reaction of NVDA stock was so positive:
immediately after the release of the quarterly report, Big Tech shares rose by around 4% in after-hours trading on Wall Street, and then shot up further, recording an increase of around 6% and exceed the threshold of 1000 dollars for the first time in history.
Pay attention to the profit and revenue forecasts that were formulated by the consensus of analysts. And which were, in fact, torn up.
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Data Center: revenues boom, +427% on an annual basis. Revenues from other units
A large and undeniable contribution to Nvidia’s stratospheric revenue growth came from data center division, who attended one turnover increase of +427% on an annual basis, to $22.6 billion.
The incidence was higher than the consensus estimates, which had been taken into account unit revenues of 21.1 billion, compared to 18.4 billion in the fourth quarter of 2023.
Regarding the performance of the other divisions, the automotive and robotics unit Nvidia reported first-quarter revenue growth of 17% on a quarterly basis and 11% on an annual basis, at $329 million, above the expected $304 million.
Nvidia announced among other things that Chinese electric car manufacturers BYD and XPengas well as other companies in the sector AION Hyper and Nuro have chosen the next generation platform Nvidia Drive Thor, which now features the Blackwell GPU architecture. Architecture which, as stated on the Big Tech USA website, is “built on 208 billion transistors that use a specific TSMC 4NP process to guarantee Nvidia’s continued leadership in accelerated computing, while its GPUs feature the most powerful chips ever built.”
Still regarding Blackwell, Nvidia explains that “the two dice are as large as possible, which guarantees the fastest performance in terms of communication for AI operations, maximizing energy efficiency. They are also interconnected via a 10 terabyte per second (TB/s) chip-to-chip NVHyperfuse interface, providing a single transparent view of the GPU for all caches and communications.”
The choice of platform Drive Thor by Nvidiathe company itself informed, took place by these companies active in the EV market to power the electric vehicles they are preparing to launch.
The gaming and AI PC segment The group instead reported revenues of $2.6 billion, down 8% on a quarterly basis but up 18% on an annual basis, to $2.6 billion, in line with expectations.
In the end, the professional visualizations division of the giant ensured revenues of $427 million, down 8% on a quarterly basis and up 45% on an annual basis.
The big stock split announcement. NVDA next to enter the Dow Jones?
In addition to the math, Nvidia yesterday announced the big stock split move that Wall Street has been betting on for some time, explaining that the 10-to-1 stock split has been decided “to make securities more accessible to employees and investors”.
Nvidia’s stock split was talked about at the beginning of the year, in the wake of the record run it had brought NVDA shares to even exceed the threshold of 900 dollars.
The previous stock split was launched by the chip giant three years ago, in 2021.
Nvidia has announced that the stock split will begin on June 6, when each shareholder, at the end of the Wall Street session, will receive 9 additional shares, which will be offered after the end of the session the following day, 7 June.
As regards dividends, Nvidia announced a 150% increase which will lead to new quarterly dividends rising to 10 cents per share, compared to the current 4 cents per share.
Considering the effects of the stock split, the new coupons – which will be paid to shareholders on June 28th – will have a value equal to 1 cent per share.
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The announcement of the share split could, according to some experts, rekindle speculation about the entry of Nvidia shares at this point in the list of industrial stocks Dow Jones Industrial Average, alongside other Big Tech USA members of the Magnificent 7 such as Apple, Amazon, Microsoft.
Considering that Nvidia shares are trading in after-hours trading on Wall Street around $1,000, the future value of the securities following the stock split will be $100.
Thus Josh Gilbert, market analyst at eToro, commented on Nvidia’s accounts: “Nvidia has hit the mark once again. Jensen Huang and his team are taking full advantage of the AI boom, reporting revenue and earnings well above forecasts and updating guidance for the second quarter. Data center revenues increased more than 400% in the quarter to a whopping $22.5 billion.”
For Gilbert, the results confirmed “once again that the demand for AI is constant and shows no signs of slowing down” as well as, also, that “Nvidia is by far the largest beneficiary”.
In this context, the eToro analyst highlighted that “the most interesting prospect for investors is that this AI boom seems to have just begun“.
In fact, “not only is Nvidia rewarding its shareholders, but it is also a major driver of earnings growth in the S&P500 and this result will probably lay the foundations for another US stock market record.”
Of course, “the question marks on the valuation will remain, but there is no denying the growth that Nvidia continues to guarantee. As if that wasn’t enough, Nvidia announced free cash flow of $14.93 billion, a 461% increase from the previous year, which led to a 150% increase in the dividend. With shares crossing the $1,000 mark in after-hours trading, the company also announced a 10-1 stock split to ensure the stock remains accessible to investors and should only improve sentiment.”
CEO Jensen Huang: after Blackwell there will be another chip
Furthermore, Nvidia has no intention of stopping, as it has made clear CEO Jensen Huang himself making it known, during the conference call called to comment on the accounts, that the company is already working to launch its next chip.
“I can announce that after Blackwell there will be another chip,” Huang said, responding to an analyst’s question.
The CEO also announced that the group could also introduce new semiconductors or new platforms on an annual basis, a factor that further fueled investor enthusiasm.
Another news the introduction of Spectrum X, a technology that will support Ethernet.
“We’re all focused on Ethernet, so we’re going to present a really exciting roadmap,” the CEO said.
And, again on Blackwell, “this year we will see a lot of revenue” related to the platform.
The announcements didn’t stop there: Nvidia made it known that There are nine new supercomputers around the world that are using Grace Hopper superchipschampioning “the new era of AI supercomputing.”
The giant also announced that it has strengthened its collaboration with the other Big Tech titans of Wall Street, i.e. with Amazon’s AWS, Google Glout, Microsoft and Oracle to further drive innovation in generative AI.
He also commented on Nvidia’s results Gianmarco Roncarolo, Sales Director for Italy of GraniteSharesa company that has 2 ETPs leveraged on Nvidia listed on the Italian Stock Exchange (3xLong and 3xShort).
“Nvidia recorded revenues exceeding $26 billion, exceeding analysts’ forecasts, up +262% compared to the same quarter last year. Margin and profit also beat expectations. The company continues its journey, consolidating and increasing its leadership in chips for artificial intelligence.”
For Roncarolo, “no one can doubt anymore how big the artificial intelligence revolution is, destined to have an increasingly significant impact on the lives of all of us, and whose potential we have only just begun to explore. Just look at the tens of billions of dollars that big tech is investing. Nvidia produces the best performing chips and it is clear that it is the main beneficiary of these huge expenses, occupying a dominant position that sees no possible rivals, at least in the short term”.
“The increase in the dividend, the stock split and above all the aggressive forecasts for the next quarter – concluded Roncarolo – show how confident the management is in the continuation of this incredible run, which seems to encounter no brakes. In the words of Jensen Huang: ‘the demand is just so strong.’ Music to investors’ ears.”
