NVIDIA reports strong earnings and revenue growth in Q1, announces stock split and dividend increase

From Nasdaq: 2024-05-23 12:09:00

NVIDIA Corporation reported Q1 fiscal 2025 earnings of $6.12 per share, beating estimates by 11.48% with a 19% increase from the year-ago quarter. Revenues jumped 262% to $26.04 billion, with a 18% sequential increase, propelled by strong GPU adoption and partnerships with top companies like TSMC, AWS, and Alphabet.

NVIDIA announced a ten-for-one stock split and raised its cash dividend by 150%, leading to a 7.21% pre-market trading surge. With shares up 91.7% year to date, NVDA continues to outperform in the Computer & Technology sector. Revenues from Graphics and Compute & Networking segments showcased significant growth, surpassing estimates across all platforms.

The company’s collaboration with Alphabet expanded, offering support for Google’s Gemma for ChatRTX to bring chatbot capabilities to RTX-powered devices. Data Center revenues rose by 427%, driven by strong demand for NVIDIA Hopper GPU computing platforms. Gaming revenues increased by 478% while revenues from Professional Visualization and Automotive segments also saw positive growth.

NVIDIA’s expanded portfolio includes the Blackwell platform for AI computing, Quantum, and Spectrum X800 series switches for InfiniBand and Ethernet. Improvements for gaming, professional visualization, and AI performance optimizations were also part of the company’s latest offerings. The non-GAAP gross margin increased to 78.9%, driven by higher Data Center sales, while operating expenses increased by 43%.

With $31.44 billion in cash, cash equivalents, and marketable securities, NVIDIA continues to focus on innovation and growth. Operating cash flow reached $15.4 billion in Q1, with a free cash flow of $14.94 billion. The company returned $7.8 billion to shareholders through dividends and share repurchases. For Q2, NVIDIA anticipates revenues of $28 billion with a non-GAAP gross margin of 75.5%.



Read more at Nasdaq: NVIDIA (NVDA) Q1 Earnings Top Estimates, Revenues Rise Y/Y