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  • Writer's pictureRealFacts Editorial Team

Nvidia Earnings Crush Wall Street Expectations. Stock Breaks $1000 After Hours.


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Nvidia reported earnings and absolutely crushed Wall Street expectations. Emily Bary of MarketWatch writes, “The company reported fiscal first-quarter revenue of $26 billion, up 262% from a year before. That compares with the $24.6 billion FactSet consensus view — and bullish buy-side expectations that analysts said were near $26 billion. Data-center revenue catapulted 427% to $22.6 billion, whereas analysts had been expecting $21.3 billion. Nvidia's net income was $14.9 billion, or $5.98 a share, up from $2.0 billion, or 82 cents a share, in the year-before period. On an adjusted basis, Nvidia posted earnings per share of $6.12, up from $1.09 a year prior. The FactSet consensus was for $5.60.” The company, now considered by many to be the most important in the world, raised its revenue guidance for next quarter to $28 billion, higher than Wall Street’s forecast of $26.6 billion.

 

Nvidia should have a solid path forward for sustained growth, Nvidia CEO Jensen Huang said the following during the earnings release, “The next industrial revolution has begun. Companies and countries are partnering with NVIDIA to shift the trillion-dollar traditional data centers to accelerated computing and build a new type of data center — AI factories — to produce a new commodity: artificial intelligence.” In addition to the remarkable earnings numbers, Nvidia announced that it would be issuing a 10-to-1 stock split and increasing its quarterly dividend payout from 4 cents to 10 cents. The reason for the stock split is because the current price of shares is too high for many smaller investors, the split will allow more people to get involved in the company. These events show that Nvidia has really high cash flows that it is willing to give back to its investors. Ruben Roy, an analyst at Stifel, said the following regarding the growth outlook for Nvidia, "While too early to tell, in our view, on timing of a potential peak in broader infrastructure spend, the scaling of recent large-scale models coupled with NVDA’s Blackwell ramp in 2025 suggests to us that we are likely to see meaningful growth well into next year… the shift from general purpose compute to accelerated compute represents the company’s most significant revenue and profitability growth opportunity over the next several years," The below graph shows how Nvidia has already been dominating among other shares of tech stocks:


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Later this year Nvidia will also be releasing its new Blackwell accelerator AI chips, the company has already said that demand for these chips already surpassed supply. Nvidia CFO Collette Kress said, "Demand for H200 and Blackwell is well ahead of supply and we expect demand may exceed supply well into next year." These chips are the current pinnacle of AI infrastructure, the AI world will be dependent on these chips and other Nvidia products. Baird analyst Tristan Gerra wrote, “There is no match to Nvidia’s products offering this year and next,”

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