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NVIDIA tops high earnings expectations, announces 10-for-1 stock split

Published 2024-05-22, 04:34 p/m
© Reuters NVIDIA tops high earnings expectations, announces 10-for-1 stock split
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Proactive Investors - NVIDIA Corp (NASDAQ:NVDA, ETR:NVD) shares made gains after Wednesday's closing bell as the chipmaker’s fiscal first quarter 2025 earnings topped Wall Street’s high expectations.

Revenue increased 262% to $26 billion from $7.19 billion in the year-ago quarter, ahead of estimates of $24.6 billion, which would have marked about a 240% jump.

Data center revenue, which encompasses AI chip sales, surged 427% year-over-year to a record $22.56 billion, above estimates of $21.1 billion.

The company attributed the increase to higher shipments of the NVIDIA Hopper GPU computing platform used for training and inferencing with large language models, recommendation engines, and generative AI applications.

Gaming revenue increased 18% over the year-ago quarter to $2.65 billion but was down 8% sequentially, attributed to seasonally lower GPU sales for laptops.

Adjusted earnings per share for fiscal Q1 jumped 629% to $6.12 from $1.09, against estimates of $5.65.

“The next industrial revolution has begun — companies and countries are partnering with NVIDIA to shift the trillion-dollar traditional data centers to accelerated computing and build a new type of data center — AI factories — to produce a new commodity: artificial intelligence,” NVIDIA CEO Jensen Huang said in a statement accompanying the company’s results.

“AI will bring significant productivity gains to nearly every industry and help companies be more cost- and energy-efficient, while expanding revenue opportunities.”

NVIDIA also announced that it will be carrying out a 10-for-1 stock split to make stock ownership more accessible for employees and investors.

Each stockholder of record as of the close of market on Thursday, June 6, 2024, will receive nine additional shares, to be distributed after the close of market on Friday, June 7, 2024. Trading of post-split shares will commence on Monday, June 10, 2024.

The company also said it is increasing its quarterly cash dividend by 150% from $0.04 per share to $0.10 per share, equivalent to $0.01 on a post-split basis.

Shares of NVIDIA traded 2.5% higher at about $974 shortly following the release of its earnings. The stock has gained about 220% in the last 12 months.

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