NVIDIA Corporation (NASDAQ: NVDA) stock surged during intraday trading Thursday after the chipmaker reported better-than-expected first-quarter results and provided a bullish outlook for the second quarter.
Nvidia (NVDA) has delivered impressive first-quarter financial results, beating analyst expectations and demonstrating robust growth across its top and bottom lines. The company reported first-quarter revenue of $26.044 billion, surpassing analyst estimates of $24.646 billion. This represents a 262% year-over-year increase and an 18% sequential uptick.
Furthermore, Nvidia reported first-quarter earnings of $6.12 per share, outperforming estimates of $5.59 per share, underscoring its strong operational performance and profitability.
Looking ahead, Nvidia provided bullish guidance for the second quarter, forecasting revenue of $28 billion, plus or minus 2%, compared to analyst estimates of $26.64 billion. The company anticipates GAAP and non-GAAP gross margins of 74.8% and 75.5%, respectively, with slight variations of up to 50 basis points.
Jensen Huang, founder and CEO of Nvidia, expressed enthusiasm about the company’s position at the forefront of the next industrial revolution. He said,
“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.”
Huang elaborated on the transformative impact of AI across industries, emphasizing its potential to enhance productivity, cost efficiency, and revenue generation.
Adding to the positive news, Nvidia announced a significant corporate action—a 10-for-1 forward stock split, effective June 7. This strategic move aims to enhance liquidity and accessibility for investors, reflecting Nvidia’s confidence in its long-term growth prospects.
Furthermore, the company increased its dividend by 150% to 1 cent per share on a post-split basis, demonstrating its commitment to delivering value to shareholders.
NVIDIA (NASDAQ: NVDA) Stock Price Action
On Thursday, NVDA stock jumped 9.32%, closing at $1,038, marking a 10% increase for the week. The trading volume was 83,004,996 shares, significantly higher than the average daily volume of 49.09 million.
