NVIDIA Reports Record-Breaking Q1 Fiscal 2025 Earnings and Announces Major Developments

Published 11 months ago • 2 min read

Hey Reader,

Santa Clara, CA, May 23, 2024 — NVIDIA Corporation (NASDAQ: NVDA) has just released its earnings report for the first quarter of fiscal 2025, showcasing unprecedented growth and strategic advancements in several key areas.

Financial Highlights

  • Record Revenue: NVIDIA reported a record revenue of $26.0 billion for Q1 FY25, an 18% increase from the previous quarter and an astounding 262% increase year-over-year.
  • Earnings Per Share: The GAAP earnings per diluted share reached $5.98, a 21% increase from the previous quarter and a 629% increase from a year ago. Non-GAAP earnings per diluted share were $6.12, up 19% sequentially and 461% year-over-year.
  • Data Center Surge: The Data Center segment recorded $22.6 billion in revenue, up 23% from Q4 FY24 and a 427% increase from Q1 FY24. This growth was driven by the demand for generative AI training and inference on the Hopper platform.
  • Stock Split: NVIDIA announced a ten-for-one forward stock split effective June 7, 2024, aiming to make stock ownership more accessible to employees and investors.

Segment Performance

  • Data Center: The Data Center revenue was a record $22.6 billion, with significant contributions from the NVIDIA Hopper GPU computing platform used in AI applications.
  • Gaming: Gaming revenue was $2.6 billion, reflecting an 18% increase year-over-year despite an 8% sequential decline due to seasonality.
  • Professional Visualization: This segment saw revenues of $427 million, a 45% increase year-over-year but an 8% decrease sequentially.
  • Automotive: Automotive revenue was $329 million, up 11% year-over-year and 17% sequentially.

Strategic Initiatives and Announcements

  • AI and Computing Innovations: NVIDIA unveiled the Blackwell platform, designed for trillion-parameter-scale generative AI, and introduced NVIDIA Spectrum-X to bring large-scale AI to Ethernet-only data centers.
  • Expansion in AI and Cloud: Collaborations with major cloud providers like AWS, Google Cloud, Microsoft, and Oracle to enhance generative AI capabilities were expanded.
  • Healthcare and Automotive Advances: NVIDIA partnered with Johnson & Johnson MedTech for AI in surgical support and announced that several automotive companies have adopted the NVIDIA DRIVE platform for next-generation electric vehicles.

Dividend and Stock Split

  • Increased Dividend: NVIDIA increased its quarterly cash dividend by 150%, now $0.10 per share, payable on June 28, 2024.
  • Stock Split: The ten-for-one stock split will distribute nine additional shares for each share held as of June 6, 2024, making the stock more accessible to a broader range of investors.

Market Reaction

Following the earnings announcement, NVIDIA’s stock experienced notable activity. The stock closed at $949.50 on May 22, 2024, after reaching a high of $960.20 during the day. After hours, the stock reached $1,021.33. This positive response underscores investor confidence in NVIDIA’s strategic direction and robust financial performance.

Looking Ahead

NVIDIA’s outlook for the second quarter of fiscal 2025 is optimistic, with expected revenue of $28.0 billion, plus or minus 2%. Both GAAP and non-GAAP gross margins are anticipated to remain in the mid-70% range, reflecting continued operational efficiency and strong market demand.

CEO Commentary Jensen Huang, CEO of NVIDIA, stated, “The next industrial revolution has begun — companies and countries are partnering with NVIDIA to shift traditional data centers to accelerated computing and build AI factories to produce a new commodity: artificial intelligence. AI will bring significant productivity gains to nearly every industry.”

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