The tech giant NVIDIA experienced a surge in its stock price after reporting strong financial results for the first quarter of fiscal 2025. The company’s revenue and earnings surpassed Wall Street expectations, leading to a 6.1% jump in after-hours trading. This marked the fourth consecutive quarter of triple-digit percentage growth in both revenue and adjusted earnings per share.
Key financial numbers for NVIDIA in the first quarter of fiscal 2025 showed significant growth compared to the same period in the previous year. Revenue reached $26.0 billion, representing a 262% increase, while GAAP net income and adjusted net income saw gains of 628% and 462%, respectively. The company also announced a stock split of 10 for 1 and increased its quarterly cash dividend by 150%.
The data center segment was a major driver of revenue growth for NVIDIA, accounting for about 87% of total revenue in the first quarter. The company’s products enabling artificial intelligence capabilities, such as the NVIDIA Hopper GPU computing platform, contributed to the strong performance in this segment. The growth of AI technology, including generative AI applications like OpenAI’s ChatGPT chatbot, also played a key role in driving demand for NVIDIA’s products.
Looking ahead, NVIDIA provided guidance for the second quarter of fiscal 2025, projecting revenue of $28 billion and an adjusted EPS of $6.22. This outlook exceeded Wall Street’s expectations, indicating confidence in the company’s continued growth. CEO Jensen Huang highlighted the impact of NVIDIA’s next-generation GPU architecture, Blackwell, on driving future growth.
Overall, NVIDIA’s strong financial performance and strategic initiatives, such as the stock split and dividend increase, position the company for further success in the rapidly evolving tech industry. Investors can look forward to continued innovation and growth from NVIDIA as it leverages its leadership in AI technology to drive future growth.
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https://www.fool.com/investing/2024/05/23/nvda-stock-earnings-stock-split-ai-stocks/