NVIDIA reported first-quarter earnings that exceeded expectations, accompanied by a 10-for-1 stock split and a higher dividend. The company’s adjusted earnings per share were $6.12 with revenue of $26 billion, representing significant increases from the previous year. Analysts expected earnings per share of $5.65 on revenue of $24.69 billion. The company also announced a revenue forecast of $28 billion for the current quarter, which surpassed analyst expectations.
Nvidia’s data center revenue saw a notable increase of 427% year over year, reaching $22.6 billion and accounting for 86% of its total revenue. Despite concerns about the portion of revenue coming from hyperscalers, Nvidia’s CFO confirmed that large cloud providers contribute approximately 45% of the company’s data center revenue. The company’s gaming segment posted revenue of $2.6 billion.
The stock split is set to take place on June 7, with shareholders receiving 10 shares for each share they currently own. Additionally, a higher dividend will be paid on June 28 to shareholders as of June 11. The stock split could potentially lead to Nvidia being added to the Dow Jones Industrial Average. Nvidia’s stock price was trading near $980 per share in after-hours trading following the earnings report.
The increased dividend payment aligns with similar moves made by other tech giants such as Meta, Alphabet, and Apple, which have initiated or raised their quarterly dividends this year. The dividend announcement reflects Nvidia’s commitment to rewarding shareholders amid its strong financial performance.
The company’s CEO, Jensen Huang, highlighted the strong growth in data center revenue driven by demand for generative AI training and inference. Despite challenges in the Chinese market due to halted chip shipments, Nvidia remains optimistic about future opportunities in various industries including consumer Internet, automotive, and healthcare.
Overall, Nvidia’s first-quarter results exceeded expectations, with strong growth in data center revenue and promising forecasts for the upcoming quarter. The stock split and dividend increase demonstrate the company’s confidence in its future growth potential and commitment to delivering value to shareholders. Investors responded positively to the earnings report, with Nvidia’s shares experiencing a 4% increase in after-hours trading.
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