Quick Look:
- NVIDIA’s Q1 FY2025 revenue hit $26.0 billion, up 18% QoQ and 262% YoY.
- The data centre segment reported $22.6 billion in revenue, growing 23% QoQ and 427% YoY.
- GAAP EPS was $5.98 (up 21% QoQ, 629% YoY), and Non-GAAP EPS was $6.12 (up 19% QoQ, 461% YoY).
NVIDIA has announced its financial results for the first quarter of fiscal year 2025, showcasing remarkable growth across various segments. The company’s total revenue for Q1 FY2025 reached $26.0 billion. Thereby marking an impressive 18% increase quarter-over-quarter (QoQ).
A significant driver of this revenue surge has been the data centre segment, which reported revenues of $22.6 billion. This segment experienced a 23% increase in QoQ and an astonishing 427% growth YoY. This robust performance highlights the escalating demand for NVIDIA’s advanced data centre solutions, particularly in generative AI training and inference on the Hopper platform.
NVIDIA Announces Ten-for-One Stock Split Effective June 7, 2024
NVIDIA’s earnings per share (EPS) also saw substantial gains. The GAAP EPS was reported at $5.98, up 21% QoQ and a staggering 629% YoY. Similarly, the Non-GAAP EPS stood at $6.12, reflecting a 19% QoQ increase and a 461% rise YoY. These figures underscore the company’s strong profitability and operational efficiency.
In addition to these financial achievements, NVIDIA has announced a ten-for-one forward stock split effective June 7, 2024. Shareholders on record will receive the additional shares by June 6, 2024, with trading on the split-adjusted basis commencing on June 10, 2024. This move will make NVIDIA’s shares more accessible to a broader range of investors.
Dividend Increase by 150% to $0.01 Per Share Post-Split
NVIDIA has also declared a 150% increase in its dividend, post-split, amounting to $0.01 per share. This dividend will be payable on June 28, 2024, to shareholders on record by June 11, 2024.
Jensen Huang, NVIDIA’s CEO, highlighted the transformative impact of AI on various industries. Besides, he mentioned the company’s pivotal role in this evolution. He stated that the next industrial revolution has begun, with companies and countries partnering with NVIDIA to shift the trillion-dollar traditional data centres to accelerated computing and build a new type of data centre, AI factories, to produce a new commodity: artificial intelligence. Huang emphasised that AI is set to bring significant productivity gains, making companies more cost- and energy-efficient while expanding revenue opportunities.
Diverse Applications of Generative AI
Huang also remarked on the diverse applications of generative AI, which have expanded beyond cloud service providers to include consumer internet companies, enterprise, sovereign AI, automotive, and healthcare customers. This expansion has created multiple multibillion-dollar vertical markets. He added that their data centre growth was fueled by strong and accelerating demand for generative AI training and inference on the Hopper platform.
Looking ahead, Huang expressed optimism about NVIDIA’s future growth, mentioning the full production of the Blackwell platform, which supports trillion-parameter-scale generative AI. He also introduced Spectrum-X, a new market opportunity for large-scale AI in Ethernet-only data centres, and NVIDIA NIM, a new software offering for enterprise-grade, optimised generative AI, available across cloud, on-premises data centres, and RTX AI PCs through NVIDIA’s extensive network of ecosystem partners.
Operating Expenses Rise: GAAP Up 10% QoQ, 39% YoY
On the operational front, NVIDIA’s GAAP operating expenses increased by 10% QoQ and 39% YoY, while non-GAAP operating expenses rose by 13% QoQ and 43% YoY. These increases reflect the company’s ongoing investments in research and development to support its growth initiatives.
NVIDIA’s workforce has also grown significantly, with 29,600 employees across 36 countries, an increase of 3,404 from the previous year. Notably, the company dedicates 19,532 employees to research and development, underscoring its commitment to innovation.
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