NVIDIA Reports Record Q1 2024 Financials and Announces Ten-for-One Stock Split

  • 22. May 2024

May 22, 2024 [crocon media – msc] NVIDIA Corporation (NASDAQ: NVDA) has released its financial results for the first quarter ending April 28, 2024, and the numbers are nothing short of spectacular. NVIDIA reported a revenue of $26.0 billion, marking an 18% increase from the previous quarter and an astounding 262% increase from the same quarter last year. This surge highlights NVIDIA’s growing dominance in the AI and data center markets.

For Q1 2024, GAAP earnings per diluted share reached $5.98, representing a 21% rise from the previous quarter and a staggering 629% increase year-over-year. Non-GAAP earnings per diluted share were $6.12, up 19% from the previous quarter and up 461% from a year ago. These figures underscore NVIDIA’s exceptional performance and strategic positioning in the rapidly evolving AI and technology sectors.

Jensen Huang, NVIDIA’s founder and CEO, articulated the company’s vision with a bold statement: “The next industrial revolution has begun.” Huang highlighted that NVIDIA is at the forefront of transforming traditional data centers into “AI factories” — a new breed of data centers designed to handle the demanding workloads of artificial intelligence. This transformation promises significant productivity gains across various industries by enhancing cost and energy efficiency while expanding revenue opportunities.

NVIDIA’s data center segment was a primary growth driver, with revenue reaching a record $22.6 billion, up 23% from the previous quarter and up 427% year-over-year. This growth was fueled by the increasing demand for generative AI training and inference, particularly on NVIDIA’s Hopper platform. The expansion of generative AI beyond cloud service providers to include consumer internet companies, enterprises, sovereign AI projects, automotive, and healthcare sectors has opened multiple multibillion-dollar vertical markets.

NVIDIA’s ambitious Blackwell platform, now in full production, is set to revolutionize AI computing with its capability to handle trillion-parameter-scale generative AI. The introduction of the Spectrum-X series, designed to enable large-scale AI in Ethernet-only data centers, and NVIDIA NIM, a software offering optimized for generative AI, further strengthens NVIDIA’s comprehensive ecosystem.

In a move to make stock ownership more accessible, NVIDIA announced a ten-for-one forward stock split. This will involve distributing nine additional shares of common stock for each share held by record holders as of June 6, 2024. The split-adjusted trading is expected to commence on June 10, 2024. Additionally, NVIDIA is increasing its quarterly cash dividend by 150%, from $0.04 to $0.10 per share, which equates to $0.01 per share post-split. The increased dividend will be paid on June 28, 2024, to shareholders of record on June 11, 2024.

Looking ahead to Q2 2025, NVIDIA expects revenue to be around $28.0 billion, with GAAP and non-GAAP gross margins projected at approximately 74.8% and 75.5%, respectively. Operating expenses are anticipated to grow significantly, reflecting NVIDIA’s continuous investment in R&D and expansion initiatives.

Key Highlights and Strategic Partnerships

  • Data Center Innovations: NVIDIA launched several groundbreaking products, including the Blackwell-powered DGX SuperPOD for generative AI supercomputing and the Spectrum™ X800 series switches, optimized for AI infrastructure. The collaboration with TSMC and Synopsys to accelerate semiconductor manufacturing using NVIDIA cuLitho demonstrates NVIDIA’s pivotal role in advancing computational lithography.
  • Gaming and AI PC Advancements: Despite a slight decline in gaming revenue to $2.6 billion, NVIDIA continues to innovate with new AI gaming technologies and performance optimizations for NVIDIA GeForce RTX AI PCs. The integration of RTX technology in major upcoming games promises to enhance the gaming experience further.
  • Professional Visualization: NVIDIA introduced new GPUs for professional workflows, reinforcing its position in the AI-enhanced design and productivity sectors. The expansion of NVIDIA Omniverse™ Cloud APIs and partnerships with Siemens and Apple Vision Pro indicates a strong push towards industrial digital twins and high-resolution global climate simulations.
  • Automotive and Robotics: With first-quarter automotive revenue up to $329 million, NVIDIA’s DRIVE Thor™ platform, featuring the Blackwell GPU architecture, is set to power next-generation electric vehicles. Partnerships with major automotive manufacturers like BYD and XPENG highlight NVIDIA’s influence in transforming in-vehicle experiences through generative AI technologies.

NVIDIA’s Q1 2024 results reflect its dominant position in the AI and technology markets. The company’s strategic initiatives, robust financial performance, and innovative product launches underscore its potential for sustained growth.

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