NVIDIA Q1 Profit Up 628%! Stock Tops $1000!
NVIDIA has unveiled its impressive financial results for the first quarter, along with an optimistic revenue forecast for the second quarter. The company reported a remarkable 262% year-over-year revenue increase, reaching $26.04 billion, which significantly exceeded the anticipated $24.65 billion. Data center revenue was a major driver, surging 427% to $22.6 billion. Additionally, profits skyrocketed 628% to $14.88 billion.
For the second quarter, NVIDIA forecasts revenues of $28 billion (±2%), while analysts, according to LSEG data, had estimated $26.66 billion. The adjusted gross margin is expected to be 75.5% (±0.5%), slightly below the analysts' projection of 75.8%.
During an earnings call, CEO Jensen Huang announced that NVIDIA's upcoming Blackwell AI chips will begin shipping this quarter, with production ramping up in the next quarter. He highlighted that the launch of the next-generation Blackwell architecture chips positions the company for "the next wave of growth."
NVIDIA CFO Colette Kress attributed the Q1 data center revenue growth to increased shipments of Hopper architecture GPUs, such as the H100. She also mentioned that demand for Blackwell chips might exceed supply "until next year."
Edward Jones analyst Logan Purk remarked, "Demand for NVIDIA's GPU chips remains robust. These results should satisfy investors and reassure the market that AI investment momentum is still strong."
In addition to the financial report, NVIDIA announced a 1-for-10 stock split. Shareholders of record as of June 7 will receive nine additional shares for each share held, with trading on a split-adjusted basis commencing on June 10. The company also plans to increase its quarterly dividend by 150%, resulting in a post-split dividend of 1 cent per share.
These announcements propelled NVIDIA's stock to a record high, rising 5.9% in after-hours trading to $1005, marking the first time it has surpassed the $1000 milestone. Year-to-date, NVIDIA's stock has surged by over 90%.
