On May 23, before the US stock market,$NVIDIA (NVDA.US)$The stock price once surged more than 7%, breaking through the $1,000 mark. At one point, the total market value increased by more than 160 billion US dollars (approximately RMB 1158.4 billion). According to the news, Nvidia released a financial report that exceeded expectations, which showed that for the first fiscal quarter of fiscal year 2025 up to the end of April this year, the company's revenue, profit, and second-fiscal quarter guidance completely exceeded market expectations.
Meanwhile, Nvidia's founder and CEO Wong In-hoon announced on Nvidia's earnings call that “the next industrial revolution has begun.” He revealed that Blackwell's ultra-powerful AI chip products are being “produced at full capacity” and 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. After Blackwell's super-powerful AI chip, another chip will be launched.
It is worth noting that Nvidia's “explosion” financial report suddenly sparked a new concept in the A-share market — “electromagnetic shielding film.” Among them, Longyang Electronics, Fangbang Shares, and Zhengye Technology achieved a 20cm rise. Feirongda surged more than 10%, and Walter New Materials and Kangda New Materials rose or stopped. So what's the logic behind the market hype?
Good for raids
An earnings report that exceeded expectations set off the global chip circuit.
On May 23, before the US stock market, Nvidia's stock price once surged more than 7%, breaking through the 1,000 US dollar mark. The total market value once increased by more than 160 billion US dollars (approximately RMB 1158.4 billion). The stock price is likely to continue to reach record highs tonight.
According to the news, Nvidia released a financial report that exceeded expectations after the US stock market on Wednesday, which showed that for the first fiscal quarter of fiscal year 2025 up to the end of April this year, the company's revenue, profit, and second-fiscal quarter guidance completely exceeded market expectations.
Specifically, a summary of Nvidia's results for the first fiscal quarter of fiscal year 2025 is as follows:
Revenue increased 262% year over year to 26 billion US dollars, far exceeding market expectations of 24.5 billion US dollars, reaching a record high. This is the third consecutive quarter of Nvidia's revenue growth rate of more than 200% year on year;
Net profit increased 620% year over year to US$14.88 billion. Adjusted earnings per share were US$6.12, up 19% month-on-month and 461% year-on-year, and market expectations were US$5.59;
The gross profit margin was 78.9%, which was significantly higher than expected;
Data center revenue increased 427% year over year to US$22.6 billion, and the market forecast was US$22.1 billion, a record high;
Revenue for the second fiscal quarter of fiscal year 2025 is expected to increase to 28 billion US dollars, and the market is expected to be 26.8 billion US dollars.
Wall Street predicts that Nvidia's quarterly sales volume at the end of the current fiscal year in January next year will break through the 30 billion US dollar mark. Revenue for the second fiscal quarter may further increase to 26.67 billion US dollars, and revenue for the entire fiscal year may rise above the integer level of 110 billion US dollars.
Meanwhile, Nvidia announced that it would increase its cash dividend per common share from $0.04 to $0.10 (corresponding to $0.01 per share after the split). Nvidia also announced a stock split plan — 1 split of 10. This year alone, Nvidia's market capitalization increased by more than $1.1 trillion.
Nvidia's good earnings report led to a sharp rise in AI concept stocks such as Arm Holdings, AMD, TSMC ADR, Micron Technology, Mywell Technology, and Ultramicomputer.
According to some analysts, Nvidia's quarterly revenue was more than three times that of 7.192 billion US dollars in the same period last year, and was significantly higher than market expectations, indicating that AI investment in the technology industry remained strong.
This financial report also sparked Wall Street's optimistic expectations for Nvidia. Forty analysts gave Nvidia a “buy” rating, 2 gave it a “hold” rating, and no one suggested “sell”. The average target price was $1057.76.
Among them, UBS even raised Nvidia's target price from $1,150 to $1,200.
Hwang In-hoon's big announcement
On May 22, local time, Nvidia founder and CEO Wong In-hoon announced on Nvidia's earnings conference call that “the next industrial revolution has begun.”
He said that Blackwell's super AI chip products are being “produced at full capacity” and will be shipped in the second quarter of this year, increased production in the third quarter, and put into data centers in the fourth quarter. This year, we will see “a significant increase in Blackwell's super AI chip revenue.” This also lays the foundation for trillion-level parameter-level generative AI.
Currently, intended customers for Blackwell's super-powerful AI chip products include Amazon, Google, Meta, Microsoft, OpenAI, Oracle, and Tesla.
Hwang In-hoon revealed that Nvidia has entered the rhythm of launching new products every year. After Blackwell's super-powerful AI chip, another chip will be launched to achieve “one generation a year.”
When asked about the speed at which new products are being launched and performance is improving, Hwang In-hoon said that the entire data center built by Nvidia has become a system supplier, not just a GPU seller.
Additionally, Hwang In-hoon said that there are currently about 15,000 to 20,000 generative artificial intelligence startups across fields waiting to become Nvidia customers and obtain Nvidia equipment to train models.
Regarding AI PCs, Hwang In-hoon said that even the PC computing stack will undergo revolutionary changes and is currently “completely redesigning the way computers work.”
Regarding network revenue, Nvidia split network revenue separately for the first time. Huang Renxun said that the company will focus on three network links, from NVLink for a single computing domain to InfiniBand, to an Ethernet network computing structure.
Regarding the revenue contribution of the Ethernet network, Chief Financial Officer Colette Kress, who also attended the conference call, said that Spectrum-X, the world's first high-performance Ethernet architecture designed specifically for AI, is opening up a new market for Nvidia and is currently being mass-produced with many customers, including a large cluster of 100,000 GPUs. The company expects Spectrum X to jump to a multi-billion dollar product line within a year.
Regarding inference revenue, Colette Kress said the company expects reasoning capabilities to expand as model complexity, number of users, and number of queries per user increase. Over the past four quarters, estimated reasoning has driven approximately 40% of our data center revenue.
Detonating a new concept
Notably, Nvidia's “explosion” earnings report suddenly sparked a new concept — “electromagnetic shielding film.”
Looking back, after the first appearance of the Blackwell architecture and GB200 at the Nvidia GTC conference, it sparked a “high-speed copper connection boom” in the secondary market, and the “electromagnetic shielding film” that is being hyped up in the market today is a segment extension of high-speed copper interconnection.
According to the latest research report from Caitong Securities, with the upgrading of copper cable module products, high-speed cable process requirements have been further improved. High-speed cable production generally includes six major processes: insulating core wire extrusion, parallel wrapping, parallel cable formation, wire preparation, wire extrusion, and finished product testing. In the process of upgrading cables to high speed, higher requirements are also placed on various cable processes, such as less damage to the surface of the core wire, more parallel pairs in a single cable, and better signal crosstalk shielding.
In this case, the need for electromagnetic shielding films has followed.
As a special material for mitigating electromagnetic interference or electromagnetic radiation, electromagnetic shielding films are designed to block or attenuate electromagnetic fields and prevent electromagnetic fields from interfering with electronic devices, circuits, or systems. They are commonly used in various industries, including electronics, telecommunications, aerospace, automobiles, and medical equipment, where the reliable operation of sensitive equipment is essential.
According to BCC Research statistics, the global electromagnetic shielding materials market has gradually expanded in recent years. From $5.2 billion in 2013 to $7 billion in 2018, an increase of 1.8 billion US dollars over 5 years. The global electromagnetic shielding materials market reached US$9.25 billion in 2023, and is expected to grow at an annual rate of 10% over the next five years.
Editor/Jeffrey