esterday, May 22, after the market close, Nvidia (NVDA) crushed Wall Street projections for revenue and earnings for the company’s fiscal first quarter of 2025. Nvidia reported that revenue soared 262% year-over-year to a record $26 billion, marking an 18% quarter-over-quarter increase. Adjusted earnings per share climbed 461% to $6.12.
The Wall Street consensus had called for revenue of $24.65 billion and earnings per share of $5.59. And it even beat the Wall Street “whisper number,” which in a bullish momentum situation like this runs considerably above the official consensus.
Data center revenue hit a record $22.6 billion, up 427% year over year. Data center revenue represents 87% of Nvidia’s total sales.
For the current fiscal second quarter of 2025 Nvidia told investors to expect sales of $28 billion, up 107% year over year. (Which would, of course, mark a huge year-over-year slowdown in revenue growth from the just reported quarter. Before yesterday’s guidance analysts had been looking for sales of $26.62 billion in the fiscal second quarter.
On a conference call with analysts late Wednesday, Nvidia CEO Jensen Huang said he sees no letup in demand for the company’s graphics processing units for generative artificial intelligence applications. He said demand will exceed supply well into next year. Demand is so strong, the company said, that it sees no signs That customers are waiting for newer chips before buying. Nvidia’s customer base for AI processors is expanding from hyperscale cloud service providers to other enterprises, governments, and startups, Huang said. Some 15,000 to 20,000 startup companies are pursuing generative AI applications in media, design, digital biology, productivity and other applications, Huang said. The global AI market totaled $2.4 trillion in 2023 and is expected to rise to $30.1 trillion–a compound annual growth rate of 32%–by 2032, according to Expert Market Research.
Today, May 24, shares of Nvidia closed at $1039.99, up 9.32% on the day.
The company also announced that it was raising its quarterly dividend to 10 cents a share from 4 cents. The yield will come to 0.4 percent.
And also that the company’s board of directors had approved a 10 for 1 stock split. The record date for the split will be June 6. The stock will begin trading on a split adjusted basis on June 10.
Not surprisingly, more than 30 Wall Street firms raised their price targets on Nvidia after the company’s report.
Nvidia is a member of my long-term 50 Stocks Portfolio.
