Nvidia Q1 earnings push NVDA stock to new all-time high

Nvidia earnings bests Wall Street consensus on top and bottom lines.
Revenue rises 262% from a year ago due to revenue from data center products.
NVDA stock rises near $998 per share, above $974 former all-time high.
Dividend raised by 150% to one penny per share on post 10-for-1 split basis.

Clay Webster FXStreet

Nvidia (NVDA) earnings were a smash hit once again when they arrived after Wednesday's market close. Shares blasted past the former $974 all-time high to reach just under $1,000 per share, up more than 4% afterhours.

Nvidia earned $6.12 in adjusted earnings per share (EPS) on revenue of $26.04 billion. Both figures were far above the Wall Street consensus. Analysts had expected adjusted EPS of $5.58 on revenue of $24.6 billion, up from $7.2 billion a year earlier.

Adjusted EPS rose 461% from a year earlier and 262% YoY on revenue.

Data center revenue once again claimed the vast majority of growth, reaching $22.6 billion. This figure rose 23% above the fourth quarter and 427% from a year ago.

Nvidia management said it would institute a 10-for-1 stock split in June and raise its miniscule dividend by 150%.

For the second quarter, Nvidia management said that it expects revenue of $28 billion, yet another quarterly record.

Nvidia stock chart

NVDA 15-minute stock chart

Nvidia FAQs

What is Nvidia known for?

Nvidia is the leading fabless designer of graphics processing units or GPUs. These sophisticated devices allow computers to better process graphics for display interfaces by accelerating computer memory and RAM. This is especially true in the world of video games, where Nvidia graphics cards became a mainstay of the industry. Additionally, Nvidia is well-known as the creator of its CUDA API that allows developers to create software for a number of industries using its parallel computing platform. Nvidia chips are leading products in the data center, supercomputing and artificial intelligence industries. The company is also viewed as one of the inventors of the system-on-a-chip design.

What is the history of Nvidia?

Current CEO Jensen Huang founded Nvidia with Chris Malachowsky and Curtis Priem in 1993. All three founders were semiconductor engineers, who had previously worked at AMD, Sun Microsystems, IBM and Hewlett-Packard. The team set out to build more proficient GPUs than currently existed in the market and largely succeeded by late 1990s. The company was founded with $40,000 but secured $20 million in funding from Sequoia Capital venture fund early on. Nvidia went public in 1999 under the ticker NVDA. Nvidia became a leading designer of chips to the data center, PC, automotive and mobile markets through its close relationship with Taiwan Semiconductor.

What is Nvidia’s relationship to artificial intelligence?

In 2022, Nvidia released its ninth-generation data center GPU called the H100. This GPU is specifically designed with the needs of artificial intelligence applications in mind. For instance, OpenAI’s ChatGPT and GPT-4 large language models (LLMs) rely on the H100’s high efficiency in parallel processing to execute a high number of commands quickly. The chip is said to speed up networks by six times Nvidia’s previous A100 chip and is based on the new Hopper architecture. The H100 chip contains 80 billion transistors. Nvidia’s market cap reached $1 trillion in May 2023 largely on the promise of its H100 chip becoming the “picks and shovels” of the coming AI revolution.

Why does Jensen Huang have a cult following?

Long-time CEO Jense Huang has a cult following in Silicon Valley and on Wall Street due to his strict loyalty and determination to build Nvidia into one of the world’s leading companies. Nvidia neary fell apart on several occasions, but each time Huang bet everything on a new technology that turned out to be the ticket to the company’s success. Huang is seen as a visionary in Silicon Valley, and his company is at the forefront of most major breakthroughs in computer processing. Huang is known for his enthusiastic keynote addresses at annual Nvidia GTC conferences, as well as his love of black leather jackets and Denny’s, the fast food chain where the company was founded.

Author

Clay Webster

FXStreet

Clay Webster grew up in the US outside Buffalo, New York and Lancaster, Pennsylvania. He began investing after college following the 2008 financial crisis.

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