NVIDIA Aims For 100%+ Revenue Growth In Q2 After Solid First Quarter Earnings Report
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Chip designer NVIDIA Corporation soared immediately after its earnings report hit the wires, with its shares gaining more than 4.5% at 4:24 p.m. ET as its results saw revenue and earnings per share for the first quarter of fiscal 2025 exceed analyst estimates. NVIDIA reported $26 billion in revenue for the first quarter and topped it off with $6.12 in earnings per share - feats that allowed it to maintain triple digit growth for all major income statement items except for costs.
NVIDIA's profit during the quarter was in an entirely different league when compared to the year ago quarter's figure. It stood at $15.2 billion, more than five times the 2023 figure of $2.7 billion.
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NVIDIA Posts 262% Revenue & 462% Profit Growth In First Quarter To Top Off AI Earnings Season
NVIDIA's CFO comments that accompany every earnings release started right off the bat by explaining that the meteoric Q1 2024 earnings growth had come due to the data center business division. Data Center has been NVIDIA's bread and butter for more than a year now, and the latest results cement its role as NVIDIA's primary market.
NVIDIA categorizes its Data Center earnings into two subsegments: Compute and Networking. Compute covers hardware products responsible for data crunching and application processing, and during Q1, its revenue accounted for roughly 86% of Data Center sales. NVIDIA raked in $22.5 billion in sales through Data Center, of which Compute made up $19.3 billion.
According to the firm's release, this growth came due to "higher shipments of the NVIDIA Hopper GPU computing platform used for training and inferencing with large language models, recommendation engines, and generative AI applications," which underpinned the strength of corporate upgrades to
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