NVIDIA surprised the market with another bomb earnings report. Here’s what we learned…

Earnings season has passed in the blink of an eye and the end is already behind us.

At the end of the season, we saved the best for last. Yesterday, one of the largest and most influential companies on Wall Street published its results. It is a market leader in one of the hottest sectors to emerge in the last few years: artificial intelligence.

I am talking about NVIDIA Corporation (NVDA).

NVIDIA is the last company in the Magnificent Seven to announce earnings, and expectations were high. I expected the NVDA report to be the culmination of a stunning earnings season. And as I will explain in a moment, it did not disappoint.

The reality is that NVIDIA is one of the biggest growth stories of this generation. The company has grown rapidly – ​​especially over the last five years. Shares followed suit, rising about 2,000% in yesterday’s report. It’s truly amazing – this is the ride we’ve been on Growth investor from May 2019

This type of growth is a testament to the company itself. But we can also go back to exactly a year ago. Back then, the company released its first-quarter fiscal 2024 results, and the chipmaker first wowed Wall Street with demand for AI chips.

This was really evident when the AI ​​revolution took over virtually the entire market. For example, according to a Bank of America study, the number of mentions of artificial intelligence during earnings calls increased by as much as 186%.

This is truly amazing and the main reason why Wall Street has been anxiously awaiting the report. I must admit that I do too – because NVIDIA is like that the a market leader that will set the tone for stocks as they emerge from earnings season.

Now on Tuesday Market 360, I gave a foretaste of what analysts expected. I also predicted that another result surprise was likely. But as I noted, even more important would be company guidelines.

So in today’s Market 360, we’ll check out NVIDIA’s profits and discuss what it means for the AI ​​sector. Next, I’ll share how you can benefit from AI developments even if you missed the first big surge.

The numbers are in…

Yesterday, after the market closed, NVIDIA released its results for the first quarter of fiscal 2025. And the company did not disappoint.

In the first quarter of fiscal year 2025, revenue increased 262% year-over-year to a record $26.0 billion. Analysts only expected revenue of $24.65 billion. NVIDIA noted that data center revenue was also a new record, increasing 427% year-over-year to $22.6 billion.

First-quarter earnings increased 462% year-over-year to $15.24 billion, or $6.12 per share, compared to $2.71 billion, or $1.09 per share, in the first quarter of 2024. Analysts expected earnings of $5.59 per share, which is why NVIDIA posted a Surprise of 9.5% of earnings.

To give you an idea of ​​the company’s stunning success, take a look at the table below. This occurred during NVIDIA’s earnings release and shows a stunning increase in the company’s total revenue from Q2 2023 to date. We’re talking about an increase in total revenue of $19.34 billion, or 288%.

Source: NVIDIA

Moreover, company management expected revenue of approximately $28 billion in the current quarter. That’s a 171.8% increase from $10.3 billion in the second quarter of fiscal 2024 – also more than analysts expected.

I will also add that NVIDIA has planned a 10-to-one stock split for June. The split of the shares is scheduled for June 7, and the new split-adjusted price will enter into force on June 10. NVIDIA increased its quarterly dividend to also reflect the upcoming split.

Key takeaways

This report is what the folks at Bespoke Investment Group call a classic “triple play.” The company exceeded sales and revenue estimates AND issued guidance that was higher than analysts’ expectations.

Overall, I was quite pleased with the report. And apparently Wall Street too. Shares rose above $1,000 in after-hours trading and are currently up about 9% at today’s close. Much of the tech sector has followed suit.

Another thing I want to highlight about NVIDIA is that it launched a new Blackwell chip on March 18th. However, many of them won’t actually be delivered until later in the year. So what we see in the latest report reflects sales of their old chips.

In other words, just wait until they deliver new chips.

Moreover, taking into account this report, these shares are perfectly valued. But it delivered. In fact, the stock has exceeded the $1,000 price target I set last year, so I’m raising it to $1,400 (pre-split) this year.

What does this mean for artificial intelligence

In the company’s announcement, founder and CEO Jensen Huang announced that “the next industrial revolution has begun.” He continued:

Companies and countries are working with NVIDIA to move trillion-dollar traditional data centers to accelerated computing and build a new type of data center – an AI factory – to produce a new commodity: artificial intelligence. Artificial intelligence will bring significant productivity gains to almost every industry and help companies become more cost and energy efficient while increasing revenue opportunities.

Huang clearly believes that the artificial intelligence industry has enormous growth ahead of it. I think he’s right.

I would be remiss if I didn’t mention concerns that demand for these powerful chips will decline. And it looks like Huang felt the same way. In an exclusive interview with Yahoo Financesaid: “People want to deploy these data centers now. They want to launch our (GPUs) now and start saving money. That’s why the demand is so high.”

The fact is, it’s a monopoly, people. And it will remain a monopoly until the end of the decade. They won’t have any competition because they spent over $2 billion building the Blackwell chip. The chip is in a league of its own – Huang calls it an “AI factory” because it can do so much more than we think when it comes to chips. And the fact is that no one can compete with them.

The smart way to profit from the development of artificial intelligence

The profit potential of AI is no longer a secret.

This year alone, shares of many AI companies have doubled or more – and NVDA is one of them. In fact, since I added it to one of ours Growth investor Shopping lists in May 2019 increased by over 2,300%.

Now I know everyone wants to find the “next NVIDIA.”

However, there are currently approximately 70,000 AI companies around the world. And the truth is, companies like NVIDIA just don’t grow on trees. So investing in individual companies that AI plays in at this stage of the game is a difficult task at best.

That’s why I decided to share I discovered a unique strategy. This is a way to gain a steady stream of income whole The artificial intelligence industry is growing exponentially. I’m talking about something that everyday investors, industry experts, and even billionaires are using more and more.

I call this opportunity “AI Pension Formula.”

It’s not about having one or two big winners. It’s about enabling yourself to benefit from the overarching success of the AI ​​industry.

In short, now is your chance to make money a number of retirement severance pays with the success of over 10,000 companies.

It’s a little-known opportunity that allows you to get a steady stream of cash from the AI ​​boom without having to throw darts in hopes of hitting the next big thing.

What’s more, you can start taking advantage this unique situation today without doing anything particularly risky.

Click here to learn how to start your own AI income stream today.

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Kind regards,

Ludwik Navellier

Editor, Rynek 360

The Editor hereby discloses that, as of the date of this email, the Editor, directly or indirectly, owns the following securities which are the subject of the comments, analyses, opinions, advice or recommendations in or otherwise mentioned in the essay below:

NVIDIA Corporation (NVDA)