NVIDIA Stock Earnings Reports

Data Center Growth

Data Center revenue reached a record $22.6 billion, up 23% sequentially and 427% year-on-year, driven by strong demand for NVIDIA's Hopper GPU computing platform.

Gross Margins: GAAP gross margin expanded to 78.4%, and non-GAAP gross margin rose to 78.9%.

Business Segments Performance

• Data Center:
  • Strong growth across all customer types, especially enterprise and consumer internet companies.
  • Major applications in AI training and inference, with significant contributions from large cloud providers.
  • Partnerships with companies like Tesla and Meta, with substantial infrastructure scaling (e.g., Tesla’s use of 35,000 H100 GPUs).
  • Expectation for Sovereign AI revenues to approach the high single-digit billions in 2025.
• Gaming: Gaming revenue stood at $2.65 billion, a 8% sequential decline, but up 18% year-on-year.
• Pro Visualization (ProVis): Revenue at $427 million, down 8% sequentially, but up 45% year-on-year, driven by generative AI and Omniverse industrial digitalization.

Product Innovations

• H200 GPU: Expected to deliver nearly twice the inference performance of H100 and started shipping in Q2 2025. Significant interest exists for H200, with demand expected to surpass supply.
• Blackwell Platform: In full production, broad compatibility among existing architectures. Expected to launch in over 100 systems from various OEMs.
• New Networking Solutions: Introduction of the Spectrum-X Ethernet networking solution, optimized for AI operations, and expected to become a multibillion-dollar product line.

Dividend and Stock Split

NVIDIA announced a 10-for-1 stock split, effective June 10, 2024, and increased its dividend by 150%.

Guidance and Outlook

• For Q2, NVIDIA expects total revenue to reach $28 billion, with sequential growth across all platforms.
• Gross margins projected to be around 74.8% (GAAP) to 75.5% (non-GAAP).

Strategic Insights

• Jensen Huang highlighted the shift toward AI factories and the need for accelerated computing to drive efficiency and performance.
• Continuous product development to maintain competitive advantage against emerging technologies and potential competitors.

Conclusion

NVIDIA's strong performance across various segments continues, driven by the surging demand for AI solutions and infrastructure. The company's strategic focus on innovation and expanding its product ecosystem positions it well for future growth, despite ongoing supply constraints. Investors should closely monitor the deployment of new products like the H200 and Blackwell, along with the competitive landscape as NVIDIA navigates the fast-evolving AI market.