Nvidia's revenue surged over 260% in fiscal 2025's first quarter, with potential for more growth

From Nasdaq: 2024-06-19 09:43:00

Nvidia’s revenue in fiscal 2024’s first quarter dropped 13% year over year, but in fiscal 2025’s first quarter, revenue surged over 260%. Investors are optimistic about the company’s growth, especially in the data center segment, where AI spending is on the rise.

Fellow tech company Broadcom also reported strong results, with AI-related products making up a quarter of total sales and revenue increasing by over 40% year over year. Broadcom’s CEO acknowledged Nvidia as a competitor in the networking space, but believes in Nvidia’s potential for growth in AI spending.

Nvidia’s automotive and robotics segment has seen significant revenue growth, doubling in the past two years. With self-driving technology evolving, many automakers are Nvidia customers, contributing to the company’s success and potential for more growth.

While Nvidia’s potential for growth is promising, some investors believe the stock may be overvalued. With a high forward P/E ratio and P/S ratio, Nvidia will need to deliver substantial growth to justify its valuation. Investors should consider buying gradually rather than all at once.

Investors looking to buy Nvidia stock are advised to consider the stock’s current valuation and potential for more growth. The Motley Fool Stock Advisor team has identified what they believe are the 10 best stocks for investors to buy now, and Nvidia is not on the list.

Disclosure: The author has positions in Nvidia and Rivian Automotive, and The Motley Fool has positions in and recommends Nvidia. The Motley Fool also recommends Broadcom. The views expressed do not necessarily reflect those of Nasdaq, Inc.



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