Nvidia (NVDA) has once again beat Wall Street’s lofty expectations for its financial results, sending its share price up 7% as a result.
The chipmaker reported a more than 600% year-over-year increase in its profit as sales of its microchips that enable artificial intelligence (A.I.) applications continue to surge.
The company also announced a 10-for-1 stock split as its share price surpasses $1,000 U.S. for the first time.
Nvidia reported earnings per share (EPS) of $6.12 U.S. versus $5.59 U.S. that was the consensus forecast among analysts who cover the company. The profit was up 646% from $0.82 U.S. per share a year earlier.
Revenue in the year’s first quarter totaled $26.04 billion U.S. compared to $24.65 billion U.S. that was expected on Wall Street. Sales were up 268% from a year ago.
Nvidia said sales at its data centre unit, which includes it’s A.I. microchips and semiconductors, rose 427% year-over-year to $22.6 billion U.S.
The company continues to benefit from skyrocketing sales of its chips to other technology companies such as Alphabet (GOOG/GOOGL) and Microsoft (MSFT), which are using them to run their A.I. models and applications.
Chief executive officer (CEO) Jensen Huang said during the company’s earnings call that sales from the next-generation Blackwell A.I. chips should continue to propel Nvidia’s growth.
In terms of guidance, Nvidia said it expects sales of $28 billion U.S. in the current second quarter of the year. Wall Street had expected EPS of $5.95 U.S. on sales of $26.61 billion U.S.
Beyond it’s A.I. chip sales, Nvidia also highlighted strong sales of its networking parts that are used to connect clusters of microchips and semiconductors.
Nvidia said that it had $3.2 billion U.S. in networking revenue during Q1, primarily its InfiniBand products, which was three times more than sales recorded a year earlier.
Chips used in video games saw their revenue rise 18% during the quarter to $2.65 billion U.S., and chips used in cars a posted sales of $329 million U.S.
Nvidia said the 10-for-1 stock split will occur on June 7, with holders of common stock receiving nine additional shares. Trading of the stock on a split-adjusted basis will begin on June 10.
During this year’s first quarter Nvidia bought back $7.7 billion U.S. of its own shares and paid $98 million U.S. in dividends.
The company announced that it is also increasing its quarterly dividend from $0.04 U.S. per share to $0.10 U.S. on a pre-split basis. After the split, the dividend will be one penny a share.
Prior to today (May 23), Nvidia’s stock had risen 209% over the last 12 months and was trading at $949.50 U.S. per share.
