Nvidia (NASDAQ: NVDA) has reported a record-breaking first quarter for the fiscal year 2025, ending April 28, 2024, with revenue reaching $26.0 billion. This marks an 18% increase from the previous quarter and a staggering 262% rise from the same period last year. The company’s GAAP earnings per diluted share were $5.98, up 21% from the previous quarter and up 629% from a year ago. Non-GAAP earnings per diluted share were $6.12, reflecting a 19% increase from the previous quarter and a 461% rise from a year ago.
Jensen Huang, founder and CEO of Nvidia, emphasized the transformative impact of AI on various industries. “The next industrial revolution has begun — companies and countries are partnering with Nvidia to shift the trillion-dollar traditional data centers to accelerated computing and build a new type of data center — AI factories — to produce a new commodity: artificial intelligence,” Huang said. He highlighted that AI will bring significant productivity gains to nearly every industry, making companies more cost- and energy-efficient while expanding revenue opportunities.
Nvidia’s data center growth was particularly notable, driven by strong and accelerating demand for generative AI training and inference on the Hopper platform. This demand has expanded beyond cloud service providers to include consumer internet companies, enterprise, sovereign AI, automotive, and healthcare customers, creating multiple multibillion-dollar vertical markets.
The company is poised for its next wave of growth with the Blackwell platform, which is in full production and forms the foundation for trillion-parameter-scale generative AI. Additionally, Spectrum-X opens a new market for large-scale AI in Ethernet-only data centers, and Nvidia NIM is a new software offering that delivers enterprise-grade, optimized generative AI to run on CUDA everywhere — from the cloud to on-prem data centers and RTX AI PCs — through an expansive network of ecosystem partners.
In a significant move, Nvidia announced a ten-for-one forward stock split of its issued common stock, effective June 7, 2024. This split aims to make stock ownership more accessible to employees and investors. Each record holder of common stock as of the close of market on June 6, 2024, will receive nine additional shares of common stock, to be distributed after the close of market on June 7, 2024. Trading on a split-adjusted basis is expected to commence on June 10, 2024.
Nvidia is also increasing its quarterly cash dividend by 150%, from $0.04 per share to $0.10 per share of common stock. The increased dividend, equivalent to $0.01 per share on a post-split basis, will be paid on June 28, 2024, to all shareholders of record on June 11, 2024.
For the first quarter of fiscal 2025, Nvidia reported GAAP revenue of $26.0 billion, up 18% from the previous quarter and up 262% from a year ago. The gross margin was 78.4%, up 2.4 points from the previous quarter and up 13.8 points from a year ago. Operating expenses were $3.5 billion, up 10% from the previous quarter and up 39% from a year ago. Operating income was $16.9 billion, up 24% from the previous quarter and up 690% from a year ago. Net income was $14.9 billion, up 21% from the previous quarter and up 628% from a year ago. Diluted earnings per share were $5.98, up 21% from the previous quarter and up 629% from a year ago.
On a non-GAAP basis, Nvidia reported revenue of $26.0 billion, up 18% from the previous quarter and up 262% from a year ago. The gross margin was 78.9%, up 2.2 points from the previous quarter and up 12.1 points from a year ago. Operating expenses were $2.5 billion, up 13% from the previous quarter and up 43% from a year ago. Operating income was $18.1 billion, up 22% from the previous quarter and up 492% from a year ago. Net income was $15.2 billion, up 19% from the previous quarter and up 462% from a year ago. Diluted earnings per share were $6.12, up 19% from the previous quarter and up 461% from a year ago.
Looking ahead, Nvidia’s outlook for the second quarter of fiscal 2025 includes expected revenue of $28.0 billion, plus or minus 2%. GAAP and non-GAAP gross margins are expected to be 74.8% and 75.5%, respectively, plus or minus 50 basis points. For the full year, gross margins are expected to be in the mid-70% range. GAAP and non-GAAP operating expenses are expected to be approximately $4.0 billion and $2.8 billion, respectively. Full-year operating expenses are expected to grow in the low-40% range. GAAP and non-GAAP other income and expense are expected to be an income of approximately $300 million, excluding gains and losses from non-affiliated investments. GAAP and non-GAAP tax rates are expected to be 17%, plus or minus 1%, excluding any discrete items.
Nvidia has made significant progress since its previous earnings announcement in several areas. In the Data Center segment, first-quarter revenue was a record $22.6 billion, up 23% from the previous quarter and up 427% from a year ago. The company unveiled the Nvidia Blackwell platform to fuel a new era of AI computing at trillion-parameter scale and the Blackwell-powered DGX SuperPOD™ for generative AI supercomputing. Nvidia also announced the Nvidia Quantum and Nvidia Spectrum™ X800 series switches for InfiniBand and Ethernet, respectively, optimized for trillion-parameter GPU computing and AI infrastructure. Additionally, the company launched Nvidia AI Enterprise 5.0 with Nvidia NIM inference microservices to speed enterprise app development.
In the Gaming and AI PC segment, first-quarter revenue was $2.6 billion, down 8% from the previous quarter and up 18% from a year ago. Nvidia introduced new AI gaming technologies at GDC for Nvidia ACE and Neural Graphics and unveiled new AI performance optimizations and integrations for Windows to deliver maximum performance on Nvidia GeForce RTX AI PCs and workstations. The company also announced more blockbuster games that will incorporate RTX technology, including Star Wars Outlaws and Black Myth Wukong.
In the Professional Visualization segment, first-quarter revenue was $427 million, down 8% from the previous quarter and up 45% from a year ago. Nvidia introduced the Nvidia RTX™ 500 and 1000 professional Ada generation laptop GPUs for AI-enhanced workflows and unveiled the Nvidia RTX A400 and A1000 GPUs for desktop workstations, based on the Nvidia Ampere architecture, to bring AI to design and productivity workflows. The company also introduced Nvidia Omniverse™ Cloud APIs to power industrial digital twin software tools, including an expanded Siemens partnership, and a new framework for the Apple Vision Pro.
In the Automotive and Robotics segment, first-quarter revenue was $329 million, up 17% from the previous quarter and up 11% from a year ago. Nvidia announced that BYD, XPENG, GAC’s AION Hyper, Nuro, and others have chosen the next-generation Nvidia DRIVE Thor™ platform, which now features Blackwell GPU architecture, to power their next-generation consumer and commercial electric vehicle fleets. The company also revealed that U.S. and China electric vehicle makers Lucid and IM Motors are using the Nvidia DRIVE Orin™ platform for vehicle models targeting the European market. Additionally, Nvidia announced an array of partners using Nvidia generative AI technologies to transform in-vehicle experiences and introduced the Project GR00T foundation model for humanoid robots and major Isaac robotics platform updates.
Source: Nvidia
