Nvidia is riding high on sales growth amid surging demand for artificial intelligence

Key takeaways

Nvidia announced better-than-expected results for the first quarter of fiscal 2025.
The company reported record revenues in its data center segment, making it its fifth consecutive quarter of record results in the industry.
The chipmaker also announced a 10-to-1 forward stock split to make its shares more accessible to employees and investors.
Following the company’s earnings report, Nvidia’s stock price rose on Wednesday during extended trading.

Nvidia (NVDA) on Wednesday reported fiscal first-quarter earnings that topped analyst expectations and exceeded an increasingly high bar set by investors as data center sales surged to record levels amid surging demand for artificial intelligence (AI). Shares acquired after release.

Nvidia reported record revenue of $26.04 billion in its fiscal first quarter, more than triple the year-ago period and above analyst expectations, according to estimates compiled by Visible Alpha. Sales in Nvidia’s data center segment rose to $22.6 billion, a five-fold year-over-year increase and beating the record set in the previous quarter.

Nvidia’s net income was $14.88 billion, or $5.98 per share, compared to $2.04 billion, or 82 cents per share, reported in the same period a year earlier, which also beat analyst forecasts.

	1st quarter of fiscal year 25	Analyst estimates for the first quarter of FY25	1st quarter of fiscal year 24
Income	$26.04 billion	$24.74 billion	$7.19 billion
Diluted earnings per share	$5.98	$5.19	82 cents
Net income	$14.88 billion	$12.91 billion	$2.04 billion

Along with record profits, Nvidia announced a 10-to-1 forward stock split, meaning shareholders will receive ten shares for each they owned before the split. The chipmaker said the stock split could make shares more accessible to employees and investors.

Each shareholder will receive nine additional shares of Nvidia common stock as of the market close on Thursday, June 6, which will be distributed at the market close the following day on Friday, June 7. Trading in the shares is expected to begin on an adjusted split basis on the market on Monday, June 10.

The company also announced it would increase its quarterly cash dividend to 10 cents per share from 4 cents per share.

“The next industrial revolution has begun – 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 – the AI factory – to produce a new commodity: artificial intelligence” – Nvidia CEO Jensen Huang said in the results announcement.

Nvidia shares rose 4% to $987.49 in extended trading as of 5 p.m. ET on Wednesday following the company’s earnings release. This year their value has almost doubled.