On May 22, local time, after the US stock market closed, chip giant Nvidia released its first quarter results for the fiscal year 2025 as of April this year.
During the reporting period, Nvidia achieved revenue of $26 billion, higher than market expectations of $24.69 billion. Among them, data center revenue was $22.6 billion, also higher than market expectations of $21.13 billion. Nvidia's gross profit margin for the quarter was 78.9%, higher than the expected 77%. Nvidia expects its second quarter revenue to be $28 billion, which will be better than the market's expected $26.8 billion.
In addition, Nvidia announced that starting from June 10th, Nvidia will conduct a 10-1 share split. As of the close of June 6th, registered shareholders will receive an additional 9 shares of common stock per share for the convenience of employees and investors to hold at a lower price. The company will also increase dividends by 150% after the split to $0.01 per share to be paid to registered shareholders before June 11th.
Data shows that Nvidia's stock price rose 6.03% after the US stock market, standing above $1000 per share. As of the close of the US stock market on May 22nd local time, the stock has risen a total of 91.74% this year.
Nvidia CEO Huang Renxun stated at the performance exchange meeting that it is expected that Blackwell architecture chips will bring in a large amount of revenue this year; Blackwell architecture chips will be shipped in the second quarter and will increase production in the third quarter; It is expected that the demand for Hopper architecture chips will continue to increase this quarter.
The Nvidia Blackwell architecture was announced by Nvidia at the Nvidia GTC conference in March 2024, and is a new architecture since the Hopper architecture launched two years ago. New Blackwell GPU NVLink and technology empower AI models with trillions of parameters, enabling AI training and real-time LLM inference on models with up to 10 trillion parameters. Blackwell has the world's most powerful GPU chip, the second-generation Transformer engine, and the breakthrough 1.8TB/s bidirectional throughput provided by the fifth generation NVLink, ensuring seamless high-speed communication between up to 576 GPUs, giving Blackwell powerful performance. At the same time, GB200 products adopt a liquid cooled rack architecture, which will bring new technological iteration requirements.
Tang Haiqing, Chief Analyst of the Communication Industry at Tianfeng Securities, analyzed that Nvidia is constantly iterating new products and applying new technologies. The new products have once again broken through their capabilities in the field of AI and can help achieve breakthroughs in areas such as data processing, engineering simulation, electronic design automation, computer-aided drug design, quantum computing, and generative AI. The new generation of products is expected to usher in strong demand and drive high sales, providing support for sustained high performance in the future.
In Tang Haiqing's view, if Nvidia's financial report exceeds expectations again, it is expected to bring a catalytic boost to the AI computing power sector, The core targets of AI are expected to benefit. It is recommended to focus on optical modules, optical devices, and switch boards PCB、 Liquid cooling, copper connection Investment opportunities in the AIDC sector.