NVIDIA’s 1Q Fiscal 2025 Financial Results: Data Center Revenue Surpasses Gaming Revenue

NVIDIA reports impressive financial results for Q1 2024, driven by rising demand for generative AI and partnerships in various industries, and announces a ten-for-one stock split and increased dividend.

NVIDIA's revenue reached $26.0 billion, marking an 18% increase from the previous quarter and a 262% increase from the same period last year.
The company's success in the data center space, with record revenue of $22.6 billion, is driven by strong demand for generative AI training and inference on the Hopper platform.
NVIDIA has introduced several new platforms and software products, such as Blackwell and Spectrum-X, which will further enhance its position in the market and open up new opportunities for growth.

nVidia, the leading technology company known for its advanced graphics processing units (GPUs), has reported impressive financial results for the first quarter of 2024. The company’s revenue reached $26.0 billion, marking an 18% increase from the previous quarter and an astounding 262% increase from the same period last year. This remarkable growth can be attributed to the rising demand for generative artificial intelligence (AI) training and inference on NVIDIA’s Hopper platform.

NVIDIA’s CEO and founder, Jensen Huang, expressed his excitement about the company’s role in the ongoing industrial revolution. He highlighted how NVIDIA is partnering with various companies and countries to transform traditional data centers into AI factories, which will produce artificial intelligence as a new commodity. Huang believes that AI will bring significant productivity gains to nearly every industry, making companies more cost- and energy-efficient while expanding revenue opportunities.

The success of NVIDIA’s data center business is not limited to cloud service providers. Generative AI has also gained traction among consumer internet companies, enterprises, sovereign AI organizations, automotive manufacturers, and healthcare providers. This expansion has created multiple multibillion-dollar vertical markets for NVIDIA.

Looking ahead, NVIDIA is confident about its future growth prospects. The company has introduced several new platforms and software products that will further enhance its position in the market. The Blackwell platform, which is already in full production, enables trillion-parameter-scale generative AI. Spectrum-X opens up a brand-new market for large-scale AI in Ethernet-only data centers. Additionally, NVIDIA NIM is a new software offering that delivers optimized generative AI across various platforms, from the cloud to on-premises data centers and RTX AI PCs.

In a move to make stock ownership more accessible to employees and investors, NVIDIA has announced a ten-for-one forward stock split of its issued common stock. This split will result in a proportionate increase in the number of shares of authorized common stock. Each record holder of common stock as of June 6, 2024, will receive nine additional shares, which will be distributed on June 7, 2024. Trading is expected to commence on a split-adjusted basis on June 10, 2024.

Furthermore, NVIDIA has increased its quarterly cash dividend by an impressive 150%, from $0.04 per share to $0.10 per share of common stock. This increased dividend will be paid on June 28, 2024, to all shareholders of record on June 11, 2024.

Looking at the company’s outlook for the second quarter of fiscal 2025, NVIDIA expects revenue to reach $28.0 billion, with a gross margin of approximately 74.8% for GAAP and 75.5% for non-GAAP. Operating expenses are projected to be around $4.0 billion for GAAP and $2.8 billion for non-GAAP. Other income and expense are expected to result in an income of approximately $300 million, excluding gains and losses from non-affiliated investments. The tax rate is estimated to be 17%, plus or minus 1%, excluding any discrete items.

NVIDIA’s achievements in various sectors are worth noting. In the data center space, the company achieved record revenue of $22.6 billion in the first quarter, driven by strong demand for generative AI training and inference on the Hopper platform. NVIDIA introduced the Blackwell platform, which enables AI computing at trillion-parameter scale, and launched the DGX SuperPOD powered by Blackwell for generative AI supercomputing. The company also launched NVIDIA Quantum and Spectrum X800 series switches optimized for trillion-parameter GPU computing and AI infrastructure.

In the gaming and AI PC segment, NVIDIA reported revenue of $2.6 billion for the first quarter. The company introduced new AI gaming technologies at the Game Developers Conference (GDC), including NVIDIA ACE and Neural Graphics. It also announced AI performance optimizations and integrations for Windows, delivering maximum performance on NVIDIA Geforce RTX AI PCs and workstations. Several blockbuster games, such as Star Wars Outlaws and Black Myth Wukong, will incorporate NVIDIA’s RTX technology.

NVIDIA’s professional visualization sector achieved revenue of $427 million in the first quarter. The company introduced the NVIDIA RTX 500 and 1000 professional Ada generation laptop GPUs for AI-enhanced workflows. It also launched the NVIDIA RTX A400 and A1000 GPUs for desktop workstations, bringing AI capabilities to design and productivity workflows. NVIDIA Omniverse Cloud APIs were introduced to power industrial digital twin software tools, and partnerships with Siemens and Apple were expanded.

In the automotive and robotics field, NVIDIA reported revenue of $329 million for the first quarter. The company announced that leading electric vehicle manufacturers, including BYD, XPENG, GAC’s AION Hyper, and Nuro, have chosen the next-generation NVIDIA DRIVE Thor platform to power their consumer and commercial electric vehicle fleets. Lucid and IM Motors are also using the NVIDIA DRIVE Orin platform for vehicle models targeting the European market. NVIDIA’s generative AI technologies are being utilized by various partners to transform in-vehicle experiences, and the company introduced the Project GR00T foundation model for humanoid robots.

Colette Kress, NVIDIA’s CFO, provided commentary on the quarter’s results. Her insights can be found on NVIDIA’s official website.

Overall, NVIDIA’s impressive financial results reflect its strong position in the market and its continued focus on innovation and partnerships. The company’s advancements in data center, gaming, professional visualization, automotive, and robotics sectors demonstrate its commitment to delivering technologies that drive progress across industries. With a positive outlook for the future, NVIDIA is well-positioned for further growth and success.

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Background Information

About Apple:

Apple Inc., known for its iconic products, was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in 1976. The company has since revolutionized the technology landscape with innovations like the Macintosh computer, iPod, iPhone, iPad, and more. for its emphasis on design, user experience, and ecosystem integration, Apple's devices and software have made a profound impact on various industries. With a commitment to quality and innovation, Apple remains a global technology leader.

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About nVidia:

NVIDIA has firmly established itself as a leader in the realm of client computing, continuously pushing the boundaries of innovation in graphics and AI technologies. With a deep commitment to enhancing user experiences, NVIDIA's client computing business focuses on delivering solutions that power everything from gaming and creative workloads to enterprise applications. for its GeForce graphics cards, the company has redefined high-performance gaming, setting industry standards for realistic visuals, fluid frame rates, and immersive experiences. Complementing its gaming expertise, NVIDIA's Quadro and NVIDIA RTX graphics cards cater to professionals in design, content creation, and scientific fields, enabling real-time ray tracing and AI-driven workflows that elevate productivity and creativity to unprecedented heights. By seamlessly integrating graphics, AI, and software, NVIDIA continues to shape the landscape of client computing, fostering innovation and immersive interactions in a rapidly evolving digital world.

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Technology Explained

Blackwell: Blackwell is an AI computing architecture designed to supercharge tasks like training large language models. These powerful GPUs boast features like a next-gen Transformer Engine and support for lower-precision calculations, enabling them to handle complex AI workloads significantly faster and more efficiently than before. While aimed at data centers, the innovations within Blackwell are expected to influence consumer graphics cards as well

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Geforce: Geforce is a line of graphics processing units (GPUs) developed by Nvidia. It is the most popular GPU used in the computer industry today. Geforce GPUs are used in gaming PCs, workstations, and high-end laptops. They are also used in virtual reality systems, artificial intelligence, and deep learning applications. Geforce GPUs are designed to deliver high performance and power efficiency, making them ideal for gaming and other demanding applications. They are also capable of rendering high-resolution graphics and providing smooth, realistic visuals. Geforce GPUs are used in a variety of applications, from gaming to professional workstations, and are the preferred choice for many computer users.

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GPU: GPU stands for Graphics Processing Unit and is a specialized type of processor designed to handle graphics-intensive tasks. It is used in the computer industry to render images, videos, and 3D graphics. GPUs are used in gaming consoles, PCs, and mobile devices to provide a smooth and immersive gaming experience. They are also used in the medical field to create 3D models of organs and tissues, and in the automotive industry to create virtual prototypes of cars. GPUs are also used in the field of artificial intelligence to process large amounts of data and create complex models. GPUs are becoming increasingly important in the computer industry as they are able to process large amounts of data quickly and efficiently.