Sirwin
Sirwin

NVIDIA Corporation (NVDA) Expected First Quarter Results Arrived


They set new records with non-GAAP EPS of $6.12 (topping estimates by $0.54) and revenue of $26.04 billion (topping estimates by $1.45 billion).

The company reported record quarterly revenue of $22.6 billion in its data warehouses arm, a 427% increase from the previous year.

While Nvidia expects revenue of $28.0 billion in the second quarter, it expects GAAP and non-GAAP gross margins to be around 75%. Operating expenses are expected to grow by 40%. These expectations are also beyond the goals of Wall Street experts.

In other important news: Nvidia's board of directors approved a 10-to-1 stock split.

Shareholders whose shares are registered as of June 6, 2024 will receive nine additional shares for each share they own after the market closes on June 7.
Trading of the split-adjusted shares will begin on June 10.

Investors do not need to take any action; Brokers will handle the arrangements behind the scenes.

The split doesn't change the fundamentals of the company; It just makes each share cheaper. For example, if you currently own one share of Nvidia (trading around $1,000), you will own 10 shares worth $100 each after the split.

​​The goal is to make stock ownership more accessible to employees and investors. Low share prices may attract retail investors. Additionally, the options market is buoyed by low-priced stocks.

Nvidia CEO Huang emphasized the strong demand for the company's products, but noted that the challenge lies in supply constraints. Good news.

The shift from the existing Hopper AI platform to the more advanced Blackwell system has increased demand, and Huang expects this trend to continue next year.

However, the complexity of these chips poses challenges, as every component in data centers is the most complex computer ever built. Despite these limitations, the CEO stated that they presented an impressive financial statement.

He also emphasized that beyond cloud providers, companies like Meta and Tesla will increasingly adopt Nvidia chips, especially in the automotive industry where autonomous driving capabilities are important.

Nvidia (NASDAQ:NVDA) shares rose 2% after the semiconductor giant reported quarterly results and forecasts that beat Wall Street's expectations and announced a 10-1 stock split, according to data from Seeking Alpha.

Nvidia expects to generate $28 billion in revenue, plus or minus 2%, in the second quarter of fiscal 2025. Analysts had forecast revenue of $26.8 billion for the company led by Jensen Huang.

Adjusted gross margin is estimated to be around 75.5%, plus or minus 50 basis points, while adjusted operating expenses are expected to be around $2.8 billion.

Jensen Huang, founder and CEO of NVIDIA, said: “The next industrial revolution has begun – companies and countries are shifting trillion-dollar traditional data centers to accelerated computing and building a new type of data center – AI factories – to produce a new commodity. "It is partnering with: artificial intelligence," he said.

"Artificial intelligence will bring significant productivity gains to almost every industry, helping companies become more cost and energy efficient while increasing revenue opportunities," he said.

In the first quarter, Nvidia earned $6.12 per share with $26 billion in revenue, while game revenues increased by 18% compared to the previous year and reached $2.6 billion, in line with estimates.

Data center revenues beat expectations, coming in at $22.6 billion, compared to estimates of $21.13 billion.

While automotive revenues amounted to 329 million dollars, professional visualization revenues increased by 45% compared to the previous year, reaching 427 million dollars.

Total revenue for the period increased by 427% compared to the previous year.

My comment: Everything is great.

The information, comments and recommendations contained herein are not within the scope of investment consultancy. Investment consultancy services are provided within the framework of the investment consultancy agreement to be signed between brokerage firms, portfolio management companies, banks that do not accept deposits and customers. The comments in this article are only my personal comments and these comments may not be appropriate for your financial situation and risk return. For this reason, investments should not be made based on the information and comments in my articles.

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