Nvidia’s shares made a historic leap, crossing the $1,000 mark for the first time. This significant milestone was achieved in the wake of the company’s fiscal first-quarter earnings report, which exceeded market expectations.
Key Points from the Earnings Report
Nvidia’s earnings report for Q1 2025 revealed a robust demand for the AI chips the company manufactures. The report highlighted that the company’s earnings per share stood at $6.12, surpassing the LSEG consensus estimate of $5.59. The revenue for the quarter was reported at $26.04 billion, exceeding the expected $24.65 billion.
Blackwell Chip: Next Generation AI Chip
Nvidia’s CEO, Jensen Huang, announced that the company would begin to see revenue from its next-generation AI chip, named Blackwell, later this year. This announcement has stirred up anticipation in the market, as the Blackwell chip represents the future of AI technology.
Nvidia’s Data Center Sales skyrocketed
Nvidia’s data center sales, which include its AI chips and many of the additional parts needed to run big AI servers, rose by a staggering 427% from the year-ago quarter to $22.6 billion in revenue. This surge was attributed to the shipments of the company’s Hopper graphics processors, which include the company’s H100 GPU.
Meta’s Lama 3 and Nvidia’s H100 GPUs
A significant highlight of the quarter was Meta’s announcement of Lama 3, their latest large language model. Lama 3 utilized 24,000 H100 GPUs, underscoring the critical role Nvidia’s advanced graphics processing units play in the development and deployment of artificial intelligence applications.
Looking Ahead: Q2 2025
Looking ahead, Nvidia expects sales of $28 billion in the current quarter. Wall Street anticipates earnings per share of $5.95 on sales of $26.61 billion, according to LSEG. With the company’s track record of exceeding expectations, the market eagerly awaits the next earnings report.
Stock Split: A Strategic Move
In a strategic move, Nvidia also announced a 10 to 1 stock split. This decision is expected to make the stock more accessible to a broader range of investors.
Nvidia’s Net Income
The chipmaker reported a net income for the quarter ended April 28 of $14.88 billion, or $5.98 per share, compared with $2.04 billion, or 82 cents, in the year-earlier period. This represents a significant increase, further solidifying Nvidia’s position in the market.
The AI Boom: Nvidia at the Front
Nvidia’s quarterly earnings report has become a way for investors to gauge the strength of the AI boom that has transfixed markets in recent months. With companies like Google, Microsoft, Meta, Amazon, and OpenAI investing billions of dollars in Nvidia’s graphics processing units, it’s clear that Nvidia is at the forefront of this AI revolution.
