Nvidia's performance continues to exceed expectations.
On May 23rd, Nvidia released its first quarter financial report for the fiscal year 2025. The financial report shows that its sales and profits have achieved significant growth, exceeding market expectations, and the company has made a strong growth forecast for the next quarter. The company also announced that it will split its stocks 10 times and increase quarterly dividends by 150%.
After releasing record breaking financial reports, Nvidia's stock rose more than 7% in after hours trading, breaking through $1000. During Wednesday's regular trading session, Nvidia's stock price fell slightly by 0.46%. On the previous day, Nvidia's stock price had reached a historic high.
Continued strong performance growth
According to the company's financial report, the company achieved a revenue of $26 billion in the quarter, an increase of 18% month on month and 262% year-on-year; Net profit of 14.88 billion US dollars, a year-on-year increase of 628%; Expected revenue for the second quarter is $28 billion, with a market expectation of $26.61 billion. The company also announced that it will conduct a 1:10 stock split on June 7, 2024, with a quarterly cash dividend of $0.01 per share after the split.
From a business perspective, the company's main source of revenue is the data center business, which achieved a revenue of 22.6 billion US dollars, a month on month increase of 23% and a year-on-year increase of 427%. The company announced that it will expand its cooperation with Amazon AWS, Google Cloud Services, Microsoft, and Oracle to promote generative AI innovation. At the same time, we are collaborating with Johnson&Johnson Medical Technology to utilize artificial intelligence capabilities to support surgeries.
Colette Kress, Chief Financial Officer of Nvidia, stated in a statement that this is due to the company's shipment of "Hopper" graphics processors, including its H100 GPU. "Large cloud providers continue to drive strong growth in large-scale deployment and enhancement of NVIDIA AI infrastructure, accounting for approximately 40% of our data center revenue," Chris said in a statement.
In terms of gaming, the company achieved a gaming revenue of 2.6 billion US dollars in the quarter, a decrease of 8% month on month and a year-on-year increase of 18%. The company has also announced more heavyweight games using RTX technology, including Star Wars Outlaws and Black Myth Wukong.
In terms of professional visualization business, the company achieved a revenue of 427 million US dollars, a month on month decrease of 8% and a year-on-year increase of 45%. The company will expand its partnership with Siemens and introduce a new framework for Apple Vision Pro.
In the automotive and robotics business, the company achieved a revenue of 329 million US dollars in the quarter, a month on month increase of 17% and a year-on-year increase of 11%. The company stated that companies such as BYD, Xiaopeng Motors, and GAC Aion have chosen the next-generation NVIDIA DRIVE Thor platform, which now adopts the Blackwell GPU architecture to provide power for their next-generation consumer and commercial electric vehicle fleets.
In addition, Lucid, a new American automaker, and IM Motors, a Chinese electric vehicle manufacturer, are using the NVIDIA DRIVE Orin platform for models targeting the European market.
Huang Renxun: Prepare for the next wave of growth
Huang Renxun, founder and CEO of Nvidia, said, "The next industrial revolution has begun. Many companies and countries are collaborating with Nvidia to shift traditional data centers worth trillions of dollars towards accelerated computing and establish a new type of data center - an artificial intelligence factory - to produce a new commodity: artificial intelligence. Artificial intelligence will bring significant productivity improvements to almost every industry, help companies improve cost-effectiveness and energy efficiency, and expand revenue opportunities."
"Our data center business growth benefits from the strong demand for generative AI training and reasoning. In addition to cloud service providers, generative AI has also expanded to consumer Internet companies, automotive and healthcare customers, and has created multiple vertical markets worth billions of dollars." Huang Renxun said.
Huang Renxun also said, "We are ready for the next wave of growth. The Blackwell platform has been fully put into production, laying the foundation for trillion parameter level generative AI. Spectra-X has opened up a new market for us, introducing large-scale AI into pure Ethernet data centers. NVIDIA NIM is our new software product that provides enterprise level, optimized generative AI through our extensive ecosystem partner network, running on CUDA, from cloud to local data centers and RTX AI PCs."
At the subsequent analyst meeting, Huang Renxun stated that the new chip Blackwell has been fully put into production and will be shipped in the second quarter, with an increase in production in the third quarter. It is expected that Blackwell will bring in a large amount of revenue this year. In addition, it is expected that the demand for Hopper chips will continue to increase this quarter.
When asked about the speed of new product launch and performance improvement, Huang Renxun said that Nvidia's entire data center has become a system supplier, not just limited to GPU sellers.
In addition, Huang Renxun stated that there are currently approximately 15000 to 20000 cross disciplinary generative artificial intelligence startups waiting to become customers of Nvidia and acquire Nvidia's equipment to train models.