NVIDIA (NVDA) just released its first-quarter financial results for fiscal 2025, and it’s a cause for celebration.
NVIDIA, the leading graphics processing unit (GPU) manufacturer, recently announced its financial results for the first quarter of fiscal 2025 (ending July 30, 2023). The report painted a positive picture for the company, showcasing strong revenue growth and exceeding analyst expectations in a market that has been grappling with economic uncertainty.
Q1 Fiscal 2025 Summary
GAAP
| ($ in millions, except earnings per share) | Q1 FY25 | Q4 FY24 | Q1 FY24 | Q/Q | Y/Y |
|---|---|---|---|---|---|
| Revenue | $26,044 | $22,103 | $7,192 | Up 18% | Up 262% |
| Gross margin | 78.4% | 76.0% | 64.6% | Up 2.4 pts | Up 13.8 pts |
| Operating expenses | $3,497 | $3,176 | $2,508 | Up 10% | Up 39% |
| Operating income | $16,909 | $13,615 | $2,140 | Up 24% | Up 690% |
| Net income | $14,881 | $12,285 | $2,043 | Up 21% | Up 628% |
| Diluted earnings per share | $5.98 | $4.93 | $0.82 | Up 21% | Up 629% |
Non-GAAP
| ($ in millions, except earnings per share) | Q1 FY25 | Q4 FY24 | Q1 FY24 | Q/Q | Y/Y |
|---|---|---|---|---|---|
| Revenue | $26,044 | $22,103 | $7,192 | Up 18% | Up 262% |
| Gross margin | 78.9% | 76.7% | 66.8% | Up 2.2 pts | Up 12.1pts |
| Operating expenses | $2,501 | $2,210 | $1,750 | Up 13% | Up 43% |
| Operating income | $18,059 | $14,749 | $3,052 | Up 22% | Up 492% |
| Net income | $15,238 | $12,839 | $2,713 | Up 19% | Up 462% |
| Diluted earnings per share | $6.12 | $5.16 | $1.09 | Up 19% | Up 461% |
Current Status (as of May 23, 2024):
Nvidia’s share price fell 0.6% to roughly $947 on Wednesday morning, after closing at a record-high $953.86 the day before.
- Trading Price: $949.50 (approximate)
- 52-Week Range: $298.06 – $974.00
- Market Cap: $2.37 trillion (approximate)
Record-Breaking Revenue
A whopping $26.0 billion in revenue, a massive 18% increase from the previous quarter and a staggering 262% year-over-year growth! This phenomenal performance solidifies NVIDIA’s position as a major player in the tech world.
What it Means for Investors?
This stellar performance is likely to be met with continued investor confidence. Here are some key takeaways:
- AI is the Future: NVIDIA’s dominance in AI hardware positions them perfectly to capitalize on this rapidly growing market.
- Gaming Strength: Despite a slight dip, the gaming segment remains a strong revenue stream for NVIDIA.
- Stock Price Surge: With such impressive financials, expect the stock price to continue its upward trajectory.
Future Outlook
- Growth Projections: Analysts predict NVIDIA’s sustained expansion, backed by its leadership in the AI, gaming, and data centre areas. The continued expansion into other markets, such as self-driving cars and the metaverse, presents more growth potential.
- Strategic Focus: NVIDIA intends to use its technology competence and market position to drive future innovation. The corporation intends to enhance its R&D investments, with an emphasis on artificial intelligence, deep learning, and high-performance computing.
The Takeaway: A Promising Future, But Do Your Research
This first-quarter report paints a very promising picture for NVIDIA. However, as always, conducting thorough research and understanding your risk tolerance are crucial before making any investment decisions.