NVIDIA blew past Wall Street predictions in its latest earnings report, sending its stock soaring toward an all-time high. The company reported earnings per share of $6.12 and revenue of $26 billion for the quarter ending April 30, easily surpassing analyst forecasts.
Profits skyrocketed 628% and revenue jumped 268% compared to the same quarter last year. It was NVIDIA's most profitable quarter ever, with the previous record set just last quarter.
The star of the show was NVIDIA's data center business, which brought in $22.6 billion, a staggering 427% increase from a year ago. This segment, focused on AI applications, has grown 20-fold since 2020 and now accounts for the lion's share of NVIDIA's revenue.
NVIDIA also announced a 10-for-1 stock split effective June 7. This will bring the share price down from around $950 to a more accessible $95, without changing the company's total value. Additionally, the company increased its quarterly cash dividend by 150%, from $0.04 to $0.10 per share, providing further value to shareholders.
Jensen Huang, NVIDIA's CEO, said demand for the company's AI chips is "incredible" as businesses race to bring AI products to market using NVIDIA's platform. He noted there are now 15,000-20,000 AI startups building on NVIDIA's technology across many industries.
Huang has been a vocal proponent of the "AI factory" concept, marking a shift from the traditional data center model. In his view, the new industrial revolution centers on data and AI, where data centers are no longer cost centers but profit-generating "AI factories." This perspective has clearly paid off, as the company's AI-focused strategy has driven its remarkable financial growth.
NVIDIA says it expects the supply of its AI chips to be outpaced by intense customer demand well into next year. For now, the company is working furiously to fulfill a backlog of orders as companies vie to be first to market with the latest AI breakthroughs.
With NVIDIA's stock up nearly 500% in the last 18 months, far outpacing the broader market, the company has established itself as perhaps the biggest winner of the AI boom so far. And based on its latest blockbuster results, NVIDIA's momentum shows no signs of slowing.