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$NVIDIA (NVDA.US)$ reported Q1 earnings that beat expectations Wednesday. Revenue for the first quarter was up 18% from the previous quarter, according to the release, and up 262% from a year ago.
The firm posted earnings of $6.12/share compared to expectations of $5.59, based on 36 estimates. Revenue came in at $26.04B in the quarter, compared to $24.65 estimated. Eyes were on data center revenue, which made up most of the firm's profit, coming in at $22.6B vs. estimates of $21.06B.
“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,” CEO Jensen Huang said in the release. “AI will bring significant productivity gains to nearly every industry and help companies be more cost- and energy-efficient while expanding revenue opportunities."
The firm expects revenue of $28.0 billion, plus or minus 2%, for the current (second) quarter. The firm announced a ten-for-one forward stock split effective June 7, 2024. At current prices, investors would be able to purchase Nvidia stock at about $95/share. The firm also increased its cash dividend 150% to $0.10/share.
“Our data center growth was fueled by strong and accelerating demand for generative AI training and inference on the Hopper platform," Huang said. "Beyond cloud service providers, generative AI has expanded to consumer internet companies, and enterprise, sovereign AI, automotive and healthcare customers, creating multiple multibillion-dollar vertical markets."
