Nvidia’s stock saw a strong increase of up to 5% after the company released its first-quarter earnings report. The company outperformed expectations in both earnings and revenue, driven by the success of its GPU business. In addition to this, Nvidia also announced a 10-for-1 stock split and increased its dividend.
The chipmaker reported a 262% growth in revenue year-over-year, with a significant contribution from its AI-enabled GPU chips, particularly the H100. Key numbers from the report include a revenue of $26.04 billion, surpassing analyst estimates of $24.65 billion, data center revenue of $22.6 billion, representing a 427% increase from the previous year, and adjusted earnings per share of $6.12, higher than analyst expectations of $5.59.
Nvidia also provided strong guidance for the second quarter, with an expected revenue of $28 billion, exceeding analyst estimates of $26.61 billion. This suggests that the company anticipates continued strong sales even as customers await the launch of their next-generation GPU chip, Blackwell, in the latter half of the year.
CEO Jensen Huang expressed optimism about the company’s future growth, highlighting the importance of the Blackwell platform in enabling generative AI at a trillion-parameter scale. The company’s decision to initiate a 10-for-1 stock split and raise its quarterly dividend by 150% reflects confidence in its financial position and outlook.
Analysts are keen to hear insights from Huang during the company’s conference call, seeking guidance on the trajectory of the AI chip market for the remainder of the year and beyond. The overall sentiment from industry experts, like Carson Group and Ryan Detrick, is positive, with expectations exceeded and strong performance in key revenue streams.
In conclusion, Nvidia’s impressive first-quarter results, coupled with the announcement of a stock split and dividend increase, have instilled confidence in investors and analysts alike. The company’s focus on innovation in AI-enabled GPU technology and strong financial outlook bodes well for its future growth and market positioning.
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https://markets.businessinsider.com/news/stocks/nvidia-stock-price-q1-earnings-10-for-1-stock-split-2024-5