Nvidia’s Sales Quadruple Year-on-Year

The latest financial report from Nvidia has stunned investors and analysts alike, with the company announcing a net profit of US$14.88 billion, representing a remarkable 57 percent of sales. As a result of this outstanding performance, Nvidia has decided to increase its dividend by a staggering 150 percent to US$0.10 per share of common stock. In addition to this, the company has also revealed plans for a 10-for-1 stock split, which will see the dividend reduced to US$0.01 per share of common stock.

Surpassing all expectations, Nvidia's revenue for the quarter substantially exceeded the company's own guidance of $24 billion plus or minus 2 percent, which was provided in February 2024. By the end of the first quarter of the fiscal year 2025, Nvidia boasted a cash reserve of US$7.59 billion, further solidifying its financial position in the market.

The bulk of Nvidia's sales continue to come from the data center segment, which has been a key driver of the company's success. The first quarter revenue reached a record-breaking US$22.6 billion, marking a significant 23 percent increase from the previous quarter and an impressive 427 percent surge from the same period last year.

Breaking down the revenue figures, the gaming and AI PC sector contributed US$2.6 billion, while the professional visualization and automotive sectors added US$427 million and US$329 million, respectively. This diversification of revenue streams highlights Nvidia's ability to capitalize on multiple high-growth markets simultaneously.

In a statement, Jensen Huang, the founder and CEO of Nvidia, expressed his optimism about the company's future growth prospects. He emphasized the strong demand for generative AI training and inference on the Hopper platform, noting its expansion beyond traditional cloud service providers to encompass a wide range of industries such as consumer internet, enterprise, automotive, and healthcare.

Looking ahead, Nvidia has provided a sales forecast for the second fiscal quarter, projecting revenues of US$28.0 billion plus or minus 2 percent. With innovative new products like the Blackwell platform, Spectrum-X, and Nvidia NIM in the pipeline, the company is well-positioned to continue its trajectory of success and drive further growth in the AI and data center markets.