Nvidia projects record revenue, overhauls how it reports
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The news: Nvidia posted record first-quarter revenue of USD81.6 billion, up 85% from a year ago, beating analyst expectations of USD78.86 billion.
The company also said it is transitioning to a new reporting framework, splitting its business into two market platforms, Data Center and Edge Computing. This will better reflect its current and future growth drivers, the company said in a statement.
The numbers: Record data centre revenue of USD75.2 billion, up 92% from a year ago, also beat analyst estimates of USD73.48 billion, according to Bloomberg data. Non-GAAP earnings per diluted share of USD1.87 also beat the USD1.76 analysts had expected, according to LSEG data.
Nvidia also authorised an additional USD80 billion in share buybacks and boosted its quarterly cash dividend from 1 cent to 25 cents per share, to be paid on 26 June, the company said.
For the second quarter, Nvidia projected revenue of USD91 billion, ahead of the average analyst estimate of USD87.4 billion but well short of the highest projections of up to USD96.2 billion, Bloomberg reported, describing the outlook as disappointing given investors have grown accustomed to Nvidia shattering expectations.
Nvidia said it is again not assuming any data centre compute revenue from China in its second-quarter outlook.
Nvidia shares first fell about 3% in after-hours trading before paring most of those losses
What they said: “The buildout of AI factories — the largest infrastructure expansion in human history — is accelerating at extraordinary speed,” chief executive Jensen Huang said in a statement.
“NVIDIA is uniquely positioned at the center of this transformation as the only platform that runs in every cloud, powers every frontier and open source model, and scales everywhere AI is produced — from hyperscale data centers to the edge.”
