Nvidia announces stock split, posts Q1 earnings beat

Nvidia (NVDA) made a lot of headlines while posting its fiscal 2025 first quarter results.

The tech giant posted adjusted earnings per share of $6.12 versus the Street's $5.65 estimate. Revenue of $26.04 billion was better than the Bloomberg consensus of $24.69 billion and up 262% from a year ago.

Data center revenue rose 427% from a year ago to $22.6 billion, topping expectations of $21.13 billion.

Nvidia also announced a 10-for-1 stock split that will occur after the market close on June 7. The company is also raising its dividend from $0.04 to $0.10, which the company says is equivalent to $0.01 per share on a post-split basis.

For the second quarter, Nvidia expects to report revenue of $28 billion, plus or minus 2%, compared to the $26.6 billion estimate.

Yahoo Finance's Julie Hyman, Dan Howley and Josh Lipton break down Nvidia's latest quarterly report.

For more expert insight and the latest market action, click here to watch this full episode of Asking for a Trend.

This post was written by Stephanie Mikulich.

Video transcript

And video has done it again.

Chip giants blowing past analysts expectations in its strong fiscal first quarter, the chip giant beat on the top and the bottom line is revenue coming in at $26.04 billion.

It's versus the estimate of 24.69 billion adjusted earnings per share coming in at $6.

12 cents.

Company also gave another bullish sales forecast showing that spending on A I computing is paying off second quarter revenue will be about 28 billion.

Analysts have predicted more like 26.8 billion on top of all that.

But also announcing a 10 for one forward stock split and raising its dividend.

Julie Aman Dan Halley are here with the takeaways, you know, guys, uh you went into this print and everybody was on the same side of the boat.

90% of analysts had to buy it, you know, sometimes the herd can be right, Dan Halley.

Yeah, I mean, look, I think I'm just looking at this now, not for the first time I've been pouring over this, but I just wanna uh quickly very, very quickly point out that uh obviously the data center business easily the most important.

But I just wanna go over the gaming business real quick because now they're referring to it as gaming and A I PC.

And if you've been following what's going on with uh Microsoft, Qualcomm, Intel A MD, they're all talking about this new generation of P CS A IP CS Microsoft, I was just in Washington had a big event for this.

Now, Invidia pointing to a IP CS, they wanna get in on that action as well.

Uh Big partner with Microsoft, but, but the gaming business not the most important.

It's clearly a data center.

And I just want to point out the the revenue share uh for the company, 86% of the company's total revenue for the quarter came from data center revenue.

This is a company that was all about gaming cars.

Just a few years ago, you go back to 2021 less than half of that was the share of the total revenue pie as we talked about uh earlier.

So it's pretty incredible.

You, you mentioned the gaming there and I was interested to look at the sequential change in the various segments here.

Data center obviously up huge year over year, more than 400% quarter, over quarter of 23% still quite respectable.

Networking revenue was down 5% gaming revenue up every year, down a quarter of a quarter on uh by 8%.

And they blame that on seasonally lower GP U sales for laptops professional visualization.

That's another part of the business down 8% quarter of a quarter, auto another bright spot though up 17% quarter of a quarter.

So that one just, it's interesting to look as we see this big growth and what does it look like?

Quarter over quarter?

What kind of momentum is there behind some of these businesses?

Yeah, for sure.

Yeah, I was thinking about how heading into the print.

We were talking about some of the threads, the themes and we were talking about, listen, everybody we knew was gonna make a beeline for the data center as soon as it hit and there was this sort of narrative building out there.

Well, what if, because you had new GP U PLA platform black along the way and uh maybe customers, they delayed, they paused because they were waiting for the shining thing.

It didn't look like that happened, doesn't seem like that's happening.

And I, I guess, you know, they're, they're projecting these uh the revenue for for the next quarter, that 28 billion plus or minus uh 2% which you know, knocks out the 26.6 that that analysts have been expecting.

The Blackwell chips aren't gonna come out until the, the end of the year, right?

So that's something that I think you start to look at.

Ok. Well, if they're continuing to see these, this kind of revenue.

What does it mean?

When you know the big shiny thing comes out, the big shiny, more expensive piece comes out and you know, one of the things that they, that, that during GTC that Jensen had really uh kind of pushed was the new uh blackwell, the uh GB 200 chip, that's the two Blackwell chips uh and the gray chip um kind of all merged together into the, the super chip that's gonna be pretty pricey.

So you gotta imagine that when that starts to sell, where's the revenue gonna go from there?

And, and one more thing that um that uh we noticed in the release here is that Jensen points out um who are the customers for data center, which is important here.

He talks about that beyond the cloud service providers.

Generative A I is expanded to consumer internet company, Enterprise Sovereign A I Automotive and health care customers.

Um He says creating multiple multi billion dollar vertical markets.

And as Dan and I talked about off air, that's important because there was concern maybe that they were too reliant on the so called hyper scalers, too concentrated Jensen saying we serve a lot of people.

Yeah, but colette the CFO and her statement saying still 40% of that data is those hyper cloud giants.

Thank you guys both so much.

Appreciate it.