Nvidia, a leading company in the field of artificial intelligence, reported strong first quarter results that surpassed expectations. The company’s revenue hit a record high due to increased demand for its AI accelerators, with data center revenues reaching new heights. Nvidia also announced a 10-for-1 stock split and a 150% increase in its quarterly dividend. As a result, the company’s shares rose in after-hours trading.
CEO Jensen Huang expressed optimism about the future of AI, stating that it will bring significant productivity gains to various industries and help businesses become more efficient and profitable. Despite concerns from analysts about the impact of the upcoming launch of new AI accelerators on existing products, Nvidia performed well in its first quarter.
In terms of performance by segment, Nvidia’s data center revenue saw a significant increase, growing over 400% year-over-year. The company’s gaming and PC with AI segment also experienced growth, while the automotive and professional visualization segments showed positive results. Nvidia introduced its Blackwell platform, which is expected to power a new era of AI computing on a large scale.
Nvidia also announced plans for shareholder returns, including a 10-cent dividend per share and a stock split. The company provided guidance for the second quarter, expecting revenue of $28 billion and a non-GAAP gross margin of 75.5%. Analysts are optimistic about Nvidia’s growth potential, with expectations for continued success in the market.
Overall, Nvidia’s strategic shift towards software-centric services and focus on AI technology indicate strong growth potential for the company. Analysts and investors are bullish on Nvidia’s future prospects, with the company’s shares outperforming major ETFs and showing impressive growth. The market is expected to react positively to Nvidia’s strong performance, with potential for a bullish move in response to the company’s results.
Article Source
https://www.benzinga.com/news/earnings/24/05/38974130/nvidia-reports-beat-and-raise-q1-announces-150-dividend-hike-10-for-1-stock-split
