Nvidia Earnings: Stock Rallies As AI Giant Reports 600% Profit Explosion, 10-For-1 Stock Split

 

Nvidia reported $6.12 earnings per share and $26 billion of sales for the three-month period ending April 30, shattering mean analyst forecasts of $5.60 and $24.59 billion, according to FactSet.

Nvidia’s profits and revenues skyrocketed by 628% and 268% compared to 2023’s comparable period, respectively.

This was Nvidia’s most profitable and highest sales quarter ever, topping the quarter ending this January’s record $12.3 billion net income and $22.1 billion revenue.

Driving the numerous superlatives for Nvidia’s financial growth over the last year is unsurprisingly its AI-intensive datacenter division, which raked in $22.6 billion of revenue last quarter, a 427% year-over-year increase and a whopping 20 times higher than the $1.1 billion the segment brought in in 2020.

Nvidia also announced it will conduct a 10-for-1 stock split June 7, which would trim its share price from about $950 to $95 while maintaining the company’s total valuation, enabling investors and employees to more affordably purchase whole shares.

Nvidia’s stock popped 4% immediately after the release, sitting at what would be an all-time high in regular trading hours.

Nvidia Forecast Shatters Estimates as AI Boom Stays Strong

 

• Revenue: $26 billion for the quarter ending in April, tripling sales from a year earlier for the third consecutive quarter
• Net income: Surged sevenfold to $5.98 billion
• Projected revenue: $28 billion for the current quarter, more than double the amount from a year ago and higher than Wall Street estimates
• Stock performance: Nvidia's shares, which are up more than 90 percent this year, rose in after-hours trading after the results were released
• Stock split: The company also announced a 10-for-1 stock split
  

  Nvidia's financial success can be attributed to its early and costly bet on adapting its graphics processing units (GPUs) to take on other computing tasks, such as artificial intelligence (AI) applications. The company's flagship processor, the H100, has enjoyed feverish demand to power AI chatbots like OpenAI's ChatGPT. The announcement of a powerful successor to the H100, code-named Blackwell, is expected to further drive demand. Nvidia's dominance in the AI chip market has contributed to its soaring revenue and profits.