Nvidia forecasts quarterly revenue above estimates, unveils stock split
Nvidia forecast quarterly revenue above estimates on Wednesday and announced a stock split, lifting its shares to record-high territory and impressing investors who have tripled the chipmaker’s market value in the past year on AI optimism.
Nvidia shares jumped 5.9% to $1,005 in extended trade, peaking above the psychologically important $1,000 mark and adding about $140 billion in stock market value.
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The AI poster child’s stock has surged 90% so far this year, and a close at Wednesday’s after-hours price in the next day’s Wall Street trading session would be a new record high.
The Santa Clara, California-based company said it would split its stock ten-for-one, effective on June 7. It also said it was raising its quarterly dividend by 150% to 1 cent per share, on a post-split basis.
“Death, taxes, and NVDA beats on earnings. Even in the face of huge expectations, the company once again stepped up and delivered,” said Ryan Detrick, chief market strategist at Carson Group. “The always important data center revenue was strong, while future revenue was also impressive.”
Wall Street’s main event so far this week, Nvidia’s earnings report could add fresh fuel to a stock market rally that has lifted indexes to record highs this year.
Following Nvidia’s results, shares of rival AI-related chipmakers Advanced Micro Devices and Broadcom each rose about 2%.
Alphabet, Microsoft, Amazon.com and other technology companies have been competing for a limited supply of Nvidia’s high-end chips as they race to dominate AI computing.
During a conference call with analysts, CEO Jensen Huang said Nvidia’s upcoming Blackwell AI chips will ship in the current fiscal quarter, with production increasing in the following quarter.
Chief Financial Officer Colette Kress said demand for Blackwell chips could exceed supply “well into next year.”
Nvidia’s contract chipmaker, Taiwan Semiconductor Manufacturing, has also been working to increase its advanced packaging capacity, a key supply-chain constraint for the processors. The Taiwanese company said in April it expects to more than double its advanced packaging capacity this year.
Nvidia forecast fiscal second-quarter revenue of $28 billion, plus or minus 2%. Analysts on average were expecting revenue of $26.66 billion, according to LSEG data.
First-quarter revenue surged 262% year-over-year to $26.04 billion, beating estimates of $24.65 billion. Net income soared 628% to $14.88 billion.
“Demand for NVIDIA’s GPU chips remains white-hot,” said Logan Purk, an analyst at Edward Jones. “These results are likely enough to satiate investors’ appetites, and reassure the market that AI investment has not seen a slowdown yet.”
Dominating more than 80% of the market for AI chips, Nvidia stands in a unique position as both the largest enabler as well as beneficiary of surging AI development.
