NVIDIA Corp. exceeded expectations in their first quarter fiscal 2025 results, with revenue of $26.04 billion marking a 262% increase year over year. This growth trend continued for the third consecutive quarter with over 200% growth. Adjusted earnings per share were also impressive at $6.12 compared to $1.09 per share a year ago. The significant revenue increase was mainly driven by high shipments of NVIDIA’s Hopper graphics processors, particularly the H100 GPU.
The data center revenue for the company surged by 427% to $22.6 billion, while gaming revenue increased by 18% to $2.65 billion. Revenue from professional viewing and automobile sales also contributed with amounts of $427 million and $329 million, respectively.
Despite these strong results, NVIDIA provided guidance for the fiscal second quarter anticipating sales of $28 billion, higher than the current consensus estimate of $26.6 billion. The company remains optimistic about the growth potential in the artificial intelligence (AI) market. This has led to positive projections for companies closely associated with NVIDIA.
Five technology stocks closely linked to NVIDIA were highlighted for their potential growth in 2024. These stocks include Taiwan Semiconductor Manufacturing Co. Ltd., Super Micro Computer Inc., Dell Technologies Inc., Meta Platforms Inc., and Micron Technology Inc. Each stock has either a Zacks Rank #2 (Buy) or #3 (Hold) with positive earnings estimate revisions in the last 60 days.
Taiwan Semiconductor Manufacturing is a key manufacturer of NVIDIA chipsets, while Super Micro Computer manufactures servers using NVIDIA processors. Dell Technologies has expanded its AI offerings through a partnership with NVIDIA. Meta Platforms is set to receive shipments of NVIDIA’s new flagship AI chip, and Micron Technology produces memory chips used in NVIDIA GPUs.
These companies are all expected to see revenue and earnings growth in the current year, indicating a positive outlook for the future. NVIDIA’s performance and projections have had a ripple effect on these associated companies, driving investor interest in their potential growth.
Overall, NVIDIA’s blockbuster first quarter results have set a positive tone for the company and its associated partners, showcasing the continued momentum in the AI and technology sectors. With strong revenue growth, impressive earnings, and optimistic guidance, NVIDIA and its associated companies are poised for further success in the near future.
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https://finance.yahoo.com/news/5-stocks-likely-gain-nvidias-113000605.html