Nvidia Surges 6% after 1Q24 Earnings Beat Forecasts and Announces Stock Split

Nvidia’s stock surged 6% in after-market trading following an outstanding performance for the first quarter that surpassed estimates, with its EPS soaring by 560% year-over-year to $6.12, exceeding expectations of $5.58.

The company also saw a revenue increase of 262% YoY to $26 billion, beating forecasts of $24.59 billion. Nvidia’s gross margin increased to 78%, up 2 percentage points QoQ.

YoY growth in other segments included Data Center Revenue +427%, Gaming Revenue +18%, Professional Visualization +45%, and Automotive Revenue +11%.

Additionally, Nvidia raised its dividend by 150% to $0.10 from $0.04 and also announced a 10:1 stock split effective June 7, 2024. The stock split entails that every holder of common stock as of the market close on Thursday, June 6th will receive 9 additional shares. The distribution of these shares will take place after the close on June 7th, with split-adjusted trading commencing on Monday, June 10th.

For the next quarter, the company anticipates revenue to reach $28 billion, approximately 2% higher than the expected $26.8 billion.

Nvidia CEO Jensen Huang emphasized that the company is at the forefront of a new industrial revolution, collaborating with entities to transition traditional data centers into accelerated computing, establishing AI factories to generate artificial intelligence as an innovative commodity.

This advancement in AI is anticipated to deliver substantial productivity enhancements across various sectors, enhancing cost-efficiency, energy conservation, and revenue prospects.

Furthermore, Huang hinted at forthcoming chip developments following Blackwell, affirming Nvidia’s commitment to a yearly product release cycle.