21st Century Business Herald reporter Ni Yuqing reports from Shenzhen
No surprise, NVIDIA has once again produced unexpected results, with revenue and data center business reaching historic highs.
On May 23rd, Nvidia released its first quarter financial report for the fiscal year 2025. Under General Accounting Principles (GAAP) in the United States, its revenue reached $26.04 billion, a year-on-year increase of 262% and a month on month increase of 18%; Net profit was 14.88 billion US dollars, a year-on-year increase of 628% and a month on month increase of 21%.
Meanwhile, Nvidia's gross profit margin in the first quarter was as high as 78.9%, with an expected revenue of around 2% in the second quarter of $28 billion, which is also higher than analyst expectations. Nvidia also expects its full year gross profit margin to be around 70%.
Nvidia founder and CEO Huang Renxun bluntly stated, "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."
Recently, major institutions have also raised their expectations for Nvidia's stock price. A report released by Morgan Stanley shows that the target price for Nvidia's stock is expected to be $1000; The HSBC report raised the target price to $1350 (previously $1050).
As of the close on May 22 Eastern Time, Nvidia's stock price was $949.50 per share, with a market value of $2335.6 billion, but its post market price exceeded $1000. Since March this year, Nvidia's market value has fluctuated around $2.3 trillion, leaving only Microsoft and Apple at the forefront among technology companies, with Huang Renxun sitting third and second.
Specifically, in the core business line, in the data center sector with the highest proportion, Nvidia's revenue reached a record breaking $22.6 billion in the first quarter, a month on month increase of 23% and a year-on-year increase of 427%.
Based on this calculation, Nvidia Data Center's revenue share has reached as high as 87%. Speaking of growth, Huang Renxun, the founder and CEO of Nvidia, said: "The growth of the data center benefits from the strong demand for generative AI training and reasoning on the Hopper platform. In addition to cloud service providers, generative AI has also expanded to consumer Internet companies, as well as enterprises, sovereign AI, automotive and healthcare customers, creating multiple vertical markets worth billions of dollars."
In addition to Blackwell, Huang Renxun also mentioned, "Spectra-X (switches) have opened up a new market for us to introduce large-scale AI into Ethernet dedicated data centers. NVIDIA NIM is a new software product that provides enterprise level, optimized generative AI through a wide network of ecosystem partners, running on CUDA anywhere from the cloud to local data centers and RTX AI PCs."
Looking at the gaming and AI PC businesses, Nvidia's revenue in the first quarter was $2.6 billion, a decrease of 8% compared to the previous quarter and an increase of 18% year-on-year. Currently, there are reports that Nvidia is cooperating with MediaTek to enter the PC chip field.
In addition, Nvidia's professional visualization business revenue during the period was 427 million US dollars, a decrease of 8% month on month and a year-on-year increase of 45%; The revenue of the automotive and robotics business was 329 million US dollars, an increase of 17% month on month and 11% year-on-year.
In addition, Nvidia has announced a 1 split 10 split plan. After the closing on June 7th, shareholders holding Nvidia's common shares will receive an additional nine shares, and trading will begin on June 10th based on the split adjusted benchmark. In the first quarter, Nvidia repurchased stocks worth $7.7 billion and paid dividends worth $98 million.
In Huang Renxun's view, "the next industrial revolution has begun, and companies and countries are collaborating with NVIDIA to transform traditional data centers that cost trillions of dollars into accelerated computing and establish new data centers, namely artificial intelligence factories, to produce new goods - artificial intelligence." Huang Renxun said that artificial intelligence will bring significant productivity improvements to almost every industry.
Brady Wang, Deputy Director of Semiconductor Research at Counterpoint Research, told 21st Century Business Herald reporters that the industry has shifted from training AI models solely on LLM to deploying multimodal models, coupled with the increasing importance of AI inference, which has led to a significant expansion of its infrastructure in large-scale data centers, making Nvidia the biggest beneficiary among AI hardware suppliers.
Meanwhile, Nvidia aims to achieve growth by increasing GPU sales and diversifying its AI software revenue. Following its pricing model of $1 per GPU per hour for enterprise AI software suites, Nvidia will also significantly increase its software revenue.