Nvidia (NVDA), the leading chipmaker for graphics processing units (GPUs), saw its stock surge on May 24th, 2024, after the company reported impressive first-quarter earnings for fiscal 2025.

Stellar Earnings Performance:

Revenue jumped 18% from the previous quarter and a staggering 262% year-over-year, reaching $26.0 billion.
GAAP earnings per diluted share came in at $5.98, reflecting a 21% increase from the prior quarter and a massive 629% growth compared to the same period last year.
Non-GAAP earnings per diluted share also grew significantly, rising 19% from the previous quarter and a remarkable 461% year-over-year, reaching $6.12.

This robust financial performance underscores the continued demand for Nvidia’s cutting-edge technology across various sectors, including gaming, data centers, artificial intelligence, and the automotive industry.

Stock Split and Increased Dividend:

In addition to the stellar earnings report, Nvidia announced a much-anticipated stock split. Shareholders of record on June 6th, 2024, will receive nine additional shares for every share they hold. This effectively increases the number of outstanding shares, making them more affordable for individual investors. Trading on a post-split basis is expected to commence on June 10th, 2024.

In addition, Nvidia is increasing its quarterly cash dividend by 150% to $0.10 per share from $0.04 per share previously. This translates to $0.01 per share on a post-split basis and will be paid on June 28th, 2024, to shareholders of record on June 11th, 2024.

Market Reaction:

Investors responded enthusiastically to the news. Nvidia’s stock price (NVDA) closed at $1,064.69 on May 24th, 2024, reflecting a 2.57% increase from the opening price. This positive momentum is likely to continue in the coming days as the market digests the strong earnings report and the upcoming stock split.

Looking Ahead:

The positive outlook for Nvidia appears to be bolstered by several factors. The surging demand for high-performance computing across various industries is expected to continue fueling growth. Additionally, the company’s strategic investments in artificial intelligence and the metaverse position it well for future technological advancements.

Key Takeaways:

Nvidia reported strong first-quarter earnings, exceeding analyst expectations.
The company announced a 9-for-1 stock split, making shares more accessible to individual investors.
The quarterly cash dividend from Nvidia is rising by 150%.
The positive news resulted in a surge in Nvidia’s stock price.

With its robust financial performance and strategic positioning, Nvidia is well-positioned for continued success in the ever-evolving technological landscape.