Hurricane Nvidia increases profits by 629% and revenues by 262%. Stocks rise – Technologies

There was great anticipation surrounding Nvidia's fiscal first-quarter accounts — which, on Monday and Tuesday, gave the Nasdaq Composite historic highs. In addition to being one of the “magnificent seven” technologies, the chipmaker has also been a star of the sector, largely due to its commitment to artificial intelligence (AI). Today, its results justify its impressive run – which has seen it rise more than 700% since the last decline on Wall Street, in October 2022.

The company recorded record quarterly revenues of $26 billion, which equates to an increase of 262% compared to the same period last year. – When analysts indicated an increase of “only” by 200% (to 24.59 billion). This is done by applying accounting standards – called generally accepted accounting principles.

In the first quarter, ending April 28, Nvidia also generated much higher-than-expected earnings: GAAP net income was $14,881 million, an increase of 628% compared to the same period last year.

Earnings per share came to $5.98, an increase of 629% compared to the same period in 2023. Without accounting standards (non-GAAP), earnings per share (called adjusted earnings) were $6.12, when analysts expected it to be $5.60 , which represents an annual increase of 461%. Market consensus indicated increases of around 400%.

“The next industrial revolution has already begun – companies and countries are collaborating with Nvidia to transform traditional data centers into accelerated computing and create a new type of ‘data center’ – AI factories – to produce new unified AI,” commented Jensen Huang, founder and CEO of Nvidia, in statement Of accounts.

“AI will bring significant productivity gains to almost every industry and help companies increase cost and energy efficiency while expanding their revenue opportunities,” he added.

The company's shares continue to rise 5.95% in after-hours trading to $1,006 (A value that, if maintained tomorrow in normal times, would constitute a historical maximum). That's after it closed the regular session on Wednesday, shedding 0.46% to $949.50 (and after hitting a record closing high on Tuesday of $953.96).

Nvidia also announced this We will proceed with a “stock split” of 10 to 1, on June 7, which will lower its stock price from about $980 to $98, while its overall valuation will be maintained — allowing investors and company insiders to buy shares at lower prices. This process means that current shareholders receive 10 shares for every share they own.

This “stock split,” according to Yahoo, could heighten speculation that Nvidia may be comingBe listed on the Dow Jones Index (it is already on the NASDAQ)This joins its peers in the “Big Tech” sector that are already part of this index: Apple, Amazon, and Microsoft.

For the current quarter, the company estimates (so-called “guidance”) revenue at about $28 billion — acknowledging that it could be 2% lower or higher than that forecast. These numbers are better than what the market expected (26.6 billion).

The chipmaker did not stop there, as it also announced a strong increase in shareholder bonuses. The technology company will increase its dividend by 150%, from $0.04 per share to $0.10. This dividend equates to $0.01 per share post-stock split and will be paid effective June 28 (with shares exchanging ex-dividend on June 12).