Pioneering artificial intelligence, NVIDIA has announced its financial results for the first quarter of its fiscal year, exceeding all forecasts and driving its stock to record levels. The company’s quarterly revenue surpassed expectations, reflecting continued optimism in AI. NVIDIA shares surged to $1,005, crossing the psychologically significant $1,000 mark. The company’s value has increased by 90% this year. To celebrate, NVIDIA announced a 10-for-1 stock split effective June 7.
NVIDIA Exceeds Expectations
NVIDIA reported a quarterly revenue of $26.4 billion, with a net income of $14.88 billion. This represents an 18% increase in revenue from the previous quarter and an astounding 262% year-over-year growth. Net income soared 21% quarter-over-quarter and an incredible 690% year-over-year. For the current quarter, NVIDIA expects to generate $28 billion in revenue. Following these announcements, NVIDIA’s market capitalization surged to $2.34 trillion.
The largest revenue segment came from the Data Center business, with NVIDIA earning $22.6 billion from data center products. This marks a 23% increase from the previous quarter and a 427% rise year-over-year. NVIDIA’s primary revenue driver is its AI GPUs sold to major companies like Google, Microsoft, Meta, and Amazon. CFO Colette Kress emphasized that a significant portion of this revenue comes from Hopper GPUs, particularly the H100 GPU.
Despite tripling its business, NVIDIA shows no signs of slowing down. CEO Jensen Huang stated that the new generation of AI GPUs, named Blackwell, will significantly contribute to revenue this year. These new chips are expected to be available in data centers by the fourth quarter. Additionally, NVIDIA highlighted strong sales in networking components, crucial for clusters of tens of thousands of interconnected chips. The company reported $3.2 billion in networking revenue, mainly from InfiniBand products, more than tripling the previous year’s sales.
Just a few years ago, NVIDIA was known primarily for producing hardware for 3D gaming. This quarter, the company reported an 18% increase in gaming revenue, reaching $2.65 billion. Moreover, NVIDIA’s Automotive revenue grew 17% from the previous quarter and 11% year-over-year, totaling $329 million.
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