Nvidia reported strong first-quarter results, with adjusted earnings of $6.12 per share on revenue of $26.04 billion, driven by a 427% rise in data center revenue. The company’s data center growth was fueled by increased shipments of the NVIDIA Hopper GPU computing platform used for training various AI applications. Looking ahead to the fiscal second quarter, Nvidia expects revenue of $28 billion, above analyst estimates of $26.54 billion. The chipmaker also announced a ten-for-one forward stock split starting June 7, as well as a 150% increase in its quarterly cash dividend.
Investors reacted positively to the news, with Nvidia’s stock rising more than 5% in after-hours trading. Analysts at Goldman Sachs noted that both the first-quarter results and guidance for the second quarter met investors’ expectations.
The forward stock split is aimed at making ownership of Nvidia shares more accessible to employees and investors, while the increase in the dividend reflects the company’s confidence in its future growth prospects.
Overall, Nvidia’s strong performance in the first quarter, driven by robust demand for its AI-driven data center business, bodes well for its growth trajectory in the coming quarters. The company’s focus on innovation and expanding its market presence in the AI space positions it well for continued success in the competitive semiconductor industry.
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https://www.investing.com/news/stock-market-news/nvidia-tops-1000-a-share-in-afterhours-trading-on-strong-outlook-stock-split-3452885
