This morning, the “global AI weather vane”$NVIDIA (NVDA.US)$Once again, I handed over an answer that surprised the market. After the US stock market opened on the 23rd, Nvidia once soared more than 10%. The stock price broke through the $1,000 mark for the first time, and continued to set new record highs, with a total market value of 2.6 trillion US dollars.

This fiscal season, Nvidia directly launched three major gift packages:

The performance completely exceeded expectations: total revenue and data center revenue both reached new highs, and the Q2 revenue guidelines were raised above expectations;

Delivery of the new Blackwell series products exceeded expectations: Blackwell chip products will be shipped in the second quarter of this year, increased production in the third quarter, and launched in data centers in the fourth quarter, and this year we will see “significant growth in Blackwell chip revenue”;

Stock split+dividend multiplier: “1 split 10” was officially announced and dividend dividends were greatly increased.

The AI wave is still raging! Nvidia's performance comprehensively exceeded expectations

Looking at overall results, in the first quarter of fiscal year 2025, Nvidia achieved revenue of 26 billion US dollars, an increase of 262% over the same period last year. This is the third consecutive quarter where Nvidia's revenue grew by more than 200% year on year; net profit was 14.81 billion US dollars, up 628% year on year.

Additionally, Nvidia achieved a gross profit margin (GAAP) of 78.4%, surpassing the upper limit of guidance expectations (75.8% - 76.8%), and gross margin continued to reach new highs this quarter.

With the strong growth of the data center business, the company's gross margin level was raised to over 70%. Part of the reason is that AI products have relatively high gross profit margins, while the other part also reflects the current shortage of supply in the market, and the overall price of the product has increased.

From the data, it's easy to see that Nvidia's core growth was entirely driven by the data center business. Of the $26 billion revenue, the data center alone accounted for $22.6 billion. This means that the business's share of the company's total revenue continued to expand, reaching a record 86% this quarter.

It is worth noting that Nvidia's data center revenue data also left competitors far behind. During the same period, AMD data center revenue was US$2,337 billion, while Intel was US$3,036 billion, which meant that Nvidia data center revenue was 9.6 times that of AMD and 7.4 times that of Intel.

Guidance for the next fiscal quarter: Nvidia expects revenue of 28 billion US dollars (plus or minus 2%) for the second quarter of fiscal year 2025, up 107% year over year, exceeding market expectations of 26.8 billion US dollars; gross profit margin for the second quarter is 74.8% (plus or minus 0.5%), slightly lower than market expectations of 75.2%.

Looking at the capital expenditure of tech giants, strong guidance for the next quarter still comes from increased demand in the data center business. Previously, new Blackwell products will also be shipped, which will further drive the company's performance growth.

Looking at the capital expenditure of the Big Four Meta, Google, Microsoft, and Amazon, the total capital expenditure of the four companies reached 46.62 billion US dollars this quarter, an increase of 36% over the previous year. And since more than half of Nvidia's data center business revenue comes from cloud service providers, the company will benefit from an increase in the giant's capital expenditure.

In addition to providing chips to hyperscale cloud computing service providers, Nvidia is now also trying to diversify its business — focusing on the “AI localization” market. This is also the first time this year that Hwang In-hoon mentioned “sovereign AI”, implying a surge in demand for national-level artificial intelligence hardware.

Wong In-hoon pointed out that artificial intelligence is shifting to consumer internet companies, car manufacturers, biotech and healthcare customers. Countries are also developing their own systems, and this trend is known as sovereign artificial intelligence. He said these opportunities are creating multiple multi-billion dollar markets beyond cloud service providers.

Super hardcore! The Blackwell platform achieved revenue this year, and the new chip was “one generation a year”

According to Nvidia's earnings report, the Blackwell platform is fully in production and is expected to be delivered to customers this year.

At the same time, Huang Renxun said that Blackwell architecture GPUs will be shipped in the second quarter and production will increase in the third quarter. It is expected that they can be deployed in customer data centers in the fourth quarter, and Blackwell is expected to bring in a large amount of revenue this year.

In addition, Hwang In-hoon also revealed that Blackwell will launch a new chip later, and will also speed up the chip architecture update speed, from being updated every two years to once a year.

According to Tianfeng Securities analyst Guo Mingyi's previous forecast, Nvidia's next-generation architecture “Rubin” will be launched in the fourth quarter of 2025, and a new R100 AI chip will be introduced at that time.

Although Nvidia's performance has been multiplying for a full year, Wong In-hoon said that with the launch of the next generation of Blackwell architecture chips, the company is preparing for “the next wave of growth.”

Officially announced “1 split 10” + dividend multiplier

In addition to announcing financial reports, Nvidia also announced a stock split plan — 1 split 10. Shareholders holding Nvidia common shares will receive an additional 9 shares after the market closes on June 7 (Friday), and trading will begin on a split and adjusted basis on June 10 (Monday).

Nvidia also announced that it will increase its cash dividend per common share from $0.04 to $0.10 (corresponding to $0.01 per share after split). Nvidia bought back a total of $7.7 billion worth of shares and paid $98 million in dividends during the Q1 reporting period.

Over the past year and a half, Nvidia's stock price has risen from over 100 US dollars to close to 1,000 US dollars. Stock splits also help investors get started with Nvidia shares more easily, and are generally seen as a benefit to the US stock market.

Judging from the trend of previous stock splits, Nvidia is expected to usher in a strong rise between the official announcement of the stock split and the official stock split period.

However, the stock price performance on the day of the stock split was quite average. Of course, in the long history of Nvidia's stock price, this was just a small wave, because in the long run, it will return to the company's fundamentals.

What do you think of Wall Street?

After the financial report was released, many Wall Street analysts also rejoiced and expressed their optimism about Nvidia's financial performance.

Futurum Group stated:

Nvidia is leading the way in data centers (revenue) and is leading in every way. The entire market was waiting for that number, and Nvidia did it!

Nvidia's stock split will create “more accessibility” and will bring more impetus to stocks, and artificial intelligence trading is still thriving.

Carson Group's chief market strategist said:

Even in the face of huge expectations, Nvidia once again stepped forward and delivered results. Data center revenue, which is always important, is strong, and future revenue guidance is impressive.

Running Point Capital's chief investment officer said,

I'm sure the whole of Wall Street was relieved as many investors and analysts were nervous about Nvidia and the entire data center before this announcement.

Dan Ives, an analyst at Wade Bush Securities, said:

The AI revolution began with Nvidia, and in our opinion, the AI party has just begun, and the popcorn is ready.

Finally, Futu Securities's chief strategist will present at 19:00 tonight on “Is Nvidia's Ambition Getting Stronger?” Is the “Post-Chip Era” Coming Soon? Cow friends are welcome to make an appointment to watch the livestream~

Editor/Somer