NVIDIA CEO: GB200 AI Chip in Production
NVIDIA recently disclosed its robust financial results and future outlook during a pivotal conference, surpassing market expectations. Highlights included a stock split, dividend increase, and growing demand for both existing Hopper series and upcoming Blackwell series chips, ensuring sustained momentum in orders through the next year. This has effectively allayed previous market uncertainties. Additionally, NVIDIA revealed that its highly anticipated GB200 chip has entered mass production, heralding positive prospects for its supply chain partners, such as Foxconn (2382) and Quanta.
CEO Jensen Huang emphasized that the GB200 series, hailed as the "world's most powerful AI chip," is now in full-scale production, with shipments commencing this quarter and expected to ramp up in the subsequent quarter. This timeline surpasses industry projections, prompting a favorable market response.
Following these announcements, NVIDIA's stock surged over 6% post-conference on the 22nd, marking a historic high by crossing the $1,000 threshold for the first time. Subsequently, it recorded a further increase of over 10% during early trading on the 23rd. Analysts view Huang's disclosure regarding the GB200 developments as a pivotal moment, setting a positive trajectory for the future of NVIDIA's supply chain. Indeed, companies like Foxconn and Quanta are positioned as primary beneficiaries, primed to capitalize on the forthcoming GB200 boom.
NVIDIA reported an impressive 645% year-over-year increase in net profit for the first quarter ending April 28th, amounting to $14.88 billion, a notable milestone. Adjusted earnings per share surged by 461% to reach $6.12, surpassing market expectations, while revenue remained within the anticipated range of approximately $26 billion. Projections for the current quarter indicate a revenue estimate of $28 billion, surpassing analysts' forecasts.
During the financial conference, NVIDIA made an unexpected announcement of a stock split, effective June 7th, thereby dividing each share into ten, enhancing accessibility to its stock, which previously exceeded $1,000 per share. Furthermore, the company announced a 150% increase in dividends, elevating the quarterly dividend from $0.04 to $0.10 per share, payable on June 28th.
In addition to its financial strides, NVIDIA is actively collaborating with global partners to transform conventional data centers into accelerated computing facilities, thereby establishing a new paradigm known as AI factories. These centers are poised to produce a novel commodity: AI. By integrating AI capabilities, significant productivity enhancements can be realized across diverse industries.
Regarding the eagerly anticipated Blackwell series chips, including the B200 and GB200 products, Huang affirmed that customers are exerting substantial pressure on NVIDIA to expedite shipments. NVIDIA is actively scaling up production, with relevant products entering the production phase this quarter, and customer data centers slated for completion in the fourth quarter. Huang reiterated, "This year, NVIDIA anticipates significant revenue generation from the Blackwell platform."
