NVIDIA Reports Record-Breaking First Quarter Fiscal 2025 Financial Results
NVIDIA (NASDAQ: NVDA) has announced impressive financial results for the first quarter of fiscal year 2025, showcasing significant growth and setting new records. The company reported a quarterly revenue of $26.0 billion, marking an 18% increase from the previous quarter and an astonishing 262% rise from the same period last year.
Key Financial Highlights
- Revenue: $26.0 billion, up 18% from Q4 and up 262% year-over-year.
- GAAP Earnings per Share: $5.98, up 21% from Q4 and up 629% year-over-year.
- Non-GAAP Earnings per Share: $6.12, up 19% from Q4 and up 461% year-over-year.
- Data Center Revenue: $22.6 billion, up 23% from Q4 and up 427% year-over-year.
CEO’s Vision and Insights
Jensen Huang, founder and CEO of NVIDIA, emphasized the transformative role of AI in modern industries. He stated, “The next industrial revolution has begun — companies and countries are partnering with NVIDIA to shift traditional data centers to accelerated computing and build AI factories to produce artificial intelligence.” Huang highlighted that AI will significantly boost productivity across various sectors, making operations more cost-effective and energy-efficient while opening new revenue opportunities.
Major Drivers of Growth
NVIDIA’s exceptional growth in the data center sector was driven by the increasing demand for generative AI training and inference on the Hopper platform. This demand has expanded beyond cloud service providers to include consumer internet companies, enterprises, sovereign AI, automotive, and healthcare customers, creating multiple multi-billion-dollar vertical markets.
Forward Stock Split and Dividend Increase
NVIDIA has announced a ten-for-one forward stock split, set to take effect on June 7, 2024. This move aims to make stock ownership more accessible to employees and investors. Additionally, the quarterly cash dividend has been increased by 150%, resulting in a post-split dividend of $0.01 per share.
Future Outlook
For the second quarter of fiscal 2025, NVIDIA expects revenue to reach $28.0 billion, with GAAP and non-GAAP gross margins projected at 74.8% and 75.5%, respectively. The company anticipates full-year gross margins to be in the mid-70% range and operating expenses to grow in the low-40% range.
Technological Advancements
NVIDIA continues to push the boundaries of technology with the introduction of the Blackwell platform, designed for trillion-parameter-scale generative AI. The company also launched Spectrum-X, aimed at bringing large-scale AI to Ethernet-only data centers. Additionally, NVIDIA’s new software offering, NVIDIA NIM, delivers enterprise-grade, optimized generative AI across various platforms through its extensive network of ecosystem partners.
Segment Performance
- Data Center: Record revenue of $22.6 billion, driven by strong demand for AI capabilities.
- Gaming: Revenue of $2.6 billion, showcasing a year-over-year increase despite an 8% decline from the previous quarter.
- Professional Visualization: Revenue of $427 million, highlighting a 45% year-over-year growth.
- Automotive and Robotics: Revenue of $329 million, reflecting a 17% increase from the previous quarter and an 11% year-over-year growth.
Conclusion
NVIDIA’s remarkable performance in Q1 FY2025 underscores its leadership in AI and accelerated computing. With robust growth across multiple sectors and continued innovation, NVIDIA is well-positioned for future expansion and success. The company’s strategic initiatives and technological advancements are set to drive the next wave of growth, making NVIDIA a key player in the evolving landscape of AI and data center technologies.
Disclaimer
Certain statements in this press release, including but not limited to, statements regarding the future of AI factories, the demand for generative AI on the Hopper platform, the anticipated growth from the Blackwell platform and Spectrum-X, the impact of NVIDIA NIM, the expected revenue, gross margins, operating expenses, and tax rates for the upcoming quarter and fiscal year, and the effects of the stock split, are forward-looking statements that are subject to risks and uncertainties. These risks and uncertainties could cause actual results to differ materially from NVIDIA’s expectations. Factors that could cause actual results to differ include global economic conditions, reliance on third parties, technological advancements, market acceptance of new products, and other risks detailed in NVIDIA’s most recent reports filed with the Securities and Exchange Commission. NVIDIA assumes no obligation to update forward-looking statements to reflect future events or circumstances.
