Key Points:
- Fiscal first-quarter revenue and adjusted earnings per share (EPS) surged 262% and 461% year over year, exceeding Wall Street's expectations.
- Guidance for fiscal Q2 revenue and adjusted EPS also surpassed estimates.
- The company announced a 10-for-1 stock split.
Motley Fool Issues Rare "All In" Buy Alert
In fiscal Q1, Nvidia experienced strong demand for its AI-enabling products and services.
Shares of Nvidia (NVDA 9.76%) rose 6.1% in after-hours trading on Wednesday following the release of a robust fiscal 2025 Q1 report (ended April 28).
The stock's rise was driven by the quarter's revenue and earnings beating Wall Street's expectations, impressive Q2 guidance, and a 10-for-1 stock split announcement.
Nvidia's Key Numbers:
| Metric | Fiscal Q1 2024 | Fiscal Q1 2025 | Change YOY |
|---|---|---|---|
| Revenue | $7.19 billion | $26.0 billion | 262% |
| GAAP Operating Income | $2.14 billion | $16.91 billion | 690% |
| GAAP Net Income | $2.04 billion | $14.88 billion | 628% |
| Adjusted Net Income | $2.71 billion | $15.24 billion | 462% |
| GAAP EPS | $0.82 | $5.98 | 629% |
| Adjusted EPS | $1.09 | $6.12 | 461% |
Note: Investors should focus on adjusted numbers, which exclude one-time items.
Wall Street expected adjusted EPS of $5.59 on $24.65 billion in revenue, but Nvidia exceeded these expectations. It also surpassed its own guidance of $24 billion in revenue and $5.41 in adjusted EPS.
Platform Performance:
| Platform | Fiscal Q1 2025 Revenue | Change YOY | Change QOQ |
|---|---|---|---|
| Data Center | $22.6 billion | 427% | 23% |
| Gaming | $2.6 billion | 18% | (8%) |
| Professional Visualization | $427 million | 45% | (8%) |
| Automotive and Robotics | $329 million | 11% | 17% |
| OEM and Other | $78 million | 1% | (13%) |
| Total | $26.0 billion | 262% | 18% |
The data center segment accounted for about 87% of Nvidia's total revenue, up from 83% in the previous quarter. Growth is driven by high demand for Nvidia's AI products.
CFO Colette Kress noted the data center's growth reflects "higher shipments of the NVIDIA Hopper GPU computing platform used for AI training and inferencing with large language models, recommendation engines, and generative AI applications," as well as strong demand for networking products.
Generative AI, which powers tools like OpenAI's ChatGPT, expands AI's potential applications.
Nvidia Stock Split and Dividend Increase
Nvidia announced a 10-for-1 stock split. Investors will receive nine additional shares for each share owned as of June 6, with trading on a split-adjusted basis beginning June 10.
Nvidia also raised its quarterly dividend by 150% from $0.04 per share to $0.10 per share (post-split $0.01 per share), payable on June 28 to shareholders of record on June 11. The current dividend yield is 0.017%.
Guidance for Q2
For fiscal Q2 2025, Nvidia expects revenue of $28 billion (107% growth) and adjusted EPS of $6.22 (130% growth), surpassing Wall Street's expectations of $5.95 EPS on $26.66 billion in revenue.
Nvidia's data center products, based on the next-generation Blackwell GPU architecture, are in full production, with CEO Jensen Huang predicting these will drive the company's next growth wave.
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