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Business News/ Companies / Company Results/  Nvidia profit soars over 600%, shares top $1,000: From 10:1 stock split to dividend – key highlights from results
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Nvidia profit soars over 600%, shares top $1,000: From 10:1 stock split to dividend – key highlights from results

Nvidia experienced a remarkable increase in profits and revenues, rising by 628% and 268% respectively, compared to the corresponding period in 2023. Its net income rose more than sevenfold compared to a year earlier, jumping to $14.88 billion in its first quarter that ended April 28

California-based Nvidia reported earnings per share adjusted to exclude one-time items of $6.12, well above the $5.60 Wall Street analysts had expectedPremium
California-based Nvidia reported earnings per share adjusted to exclude one-time items of $6.12, well above the $5.60 Wall Street analysts had expected

Nvidia Corp. has reported blockbuster earnings, with profit and revenue soaring as the company's dominance in chips for artificial intelligence applications fuelled extraordinary demand. According to an Associated Press report, the results showcased Nvidia's position at the forefront of the AI boom.

Here are top 10 highlight from Nvidia results

  • The company experienced a remarkable increase in profits and revenues, rising by 628% and 268% respectively, compared to the corresponding period in 2023.

Also Read | Wall Street today: US stocks drift ahead of Fed minutes, Nvidia drops as investors await earnings

  • The net income of Nvidia surged to $14.88 billion in the first quarter, which ended April 28, and it is up more than sevenfold from $2.04 billion a year earlier. Revenue tripled to $26.04 billion from $7.19 billion in the previous year's quarter.
  • The AI giant surged past all expectations during its quarterly results, announced in the early hours of May 23, Indian time. 
  • Nvidia shares surpassed the $1,000 mark for the first time in extended trading. A 10-for-1 stock split, which divides one share into ten, has also been announced. 
  • NVIDIA will additionally pay a quarterly dividend of 10 cents, representing a 150 per cent increase.

Also Read | Nvidia earnings could spark $200 billion swing in shares, options show

  • Adjusted earnings per share of $6.12 exceeded Wall Street's expectations of $5.60. The company increased its dividend to 10 cents per share from 4 cents. Shares rose over 7% in after-hours trading to $1006.89.

Also Read | An Nvidia co-founder’s latest bet: Making ‘Quantum Valley’ in New York

  • Nvidia now boasts the third-highest market value on Wall Street, behind only Microsoft and Apple.
  • CEO Jensen Huang said that the next "industrial revolution" has begun and AI will bring significant productivity gains to nearly every industry and expand revenue opportunities.
  • Huang predicted companies would use Nvidia chips to build "AI factories" that produce “artificial intelligence." He said AI models are becoming "multimodal" and able to "reason and plan."
  • "Training AI models is becoming a faster process as they learn to become 'multimodal' — that is, capable of understanding text, speech, images, video and 3-D data — and also 'learn to reason and plan,'" Huang added, as quoted by AP.

Analysts praised Nvidia's performance, with Jacob Bourne of Emarketer remarking, "Nvidia defies gravity again." While tech giants aim to reduce dependence on Nvidia's AI hardware, "they're not quite there yet," Bourne said, as quoted by AP.

(With inputs from AP)

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Published: 23 May 2024, 06:29 AM IST
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