Having been through forty or so Nvidia quarterlies we don't have quite as much urgency to get the numbers on the page as a lot of folks do.* We like transcripts.
From Investing.com, May 28:
Earnings call transcript: NVIDIA beats Q1 2025 expectations....
NVIDIA Corporation reported strong fiscal Q1 2025 earnings, surpassing both earnings per share (EPS) and revenue expectations. The company posted an EPS of $0.96, exceeding the forecast of $0.93, and achieved revenue of $44.1 billion against a projected $43.31 billion. Following the announcement, NVIDIA’s stock rose by 4.29% in aftermarket trading, reflecting investor confidence in its growth trajectory. The company’s impressive performance is backed by a perfect Piotroski Score of 9, according to InvestingPro data, indicating exceptional financial strength. Based on InvestingPro’s Fair Value analysis, NVIDIA currently appears to be trading above its intrinsic value.
Key Takeaways
- NVIDIA’s Q1 2025 EPS of $0.96 beat the forecast of $0.93.
- Revenue reached $44.1 billion, surpassing the $43.31 billion forecast.
- Stock surged 4.29% in aftermarket trading, closing at $140.59.
- Data center revenue saw a significant increase of 73% year-on-year.
- The company launched several innovative products, including the Blackwell architecture.
Company Performance
NVIDIA’s performance in Q1 2025 underscores its leadership in the AI and gaming sectors. The company’s data center revenue reached $39 billion, marking a 73% year-on-year increase, while gaming revenue set a record at $3.8 billion. This growth is attributed to the rising demand for AI applications and gaming technologies, positioning NVIDIA favorably against competitors. InvestingPro data reveals impressive year-over-year revenue growth of 114.2%, with a robust gross profit margin of 75%. The company maintains exceptional financial health with a current ratio of 4.44, indicating strong liquidity.
Financial Highlights
- Revenue: $44.1 billion, up 69% year-over-year
- Earnings per share: $0.96, above the forecast of $0.93
- Data Center Revenue: $39 billion, up 73% year-on-year
- Gaming Revenue: $3.8 billion, up 48% sequentially
Earnings vs. Forecast
NVIDIA’s actual EPS of $0.96 represented a 3.23% surprise over the forecasted $0.93. Revenue also exceeded expectations by $800 million, highlighting the company’s ability to capitalize on market trends and maintain strong financial health.
Market Reaction
The positive earnings report led to a 4.29% increase in NVIDIA’s stock price in aftermarket trading, reaching $140.59. This reaction reflects strong investor confidence, driven by the company’s robust performance and promising outlook, despite broader market volatility.
Outlook & Guidance
Looking ahead, NVIDIA expects Q2 revenue to be approximately $45 billion, plus or minus 2%. The company is preparing for modest sequential growth across its platforms, with a focus on expanding its AI infrastructure and enterprise solutions. However, it anticipates a decrease in China data center revenue due to geopolitical factors. With a beta of 2.11, investors should note the stock’s higher volatility compared to the market. For deeper insights into NVIDIA’s valuation and growth prospects, InvestingPro subscribers can access comprehensive research reports and 18 additional ProTips that provide valuable context for investment decisions.
Executive Commentary
CEO Jensen Huang emphasized the rapid growth of AI, stating, "AI is growing faster and will be larger than any platform shifts before, including the Internet, mobile, and cloud." He also highlighted NVIDIA’s multiple growth engines and the onset of the robotics era.
Risks and Challenges
- Potential decrease in China data center revenue due to geopolitical tensions.
- Economic uncertainties that could affect demand for NVIDIA’s products.
- Competition in the AI and gaming markets, which could impact market share.
- Supply chain challenges that may affect production and delivery timelines.
Q&A
During the earnings call, analysts focused on the impact of China export controls and NVIDIA’s strategic initiatives in AI and enterprise markets. Discussions also covered the company’s networking and compute technologies, providing insights into its competitive advantages.
Full transcript - NVIDIA Corporation (NVDA) Q1 2026:
Sarah, Conference Operator: Good afternoon. My name is Sarah, and I will be your conference operator today. At this time, I would like to welcome everyone to NVIDIA’s First Quarter Fiscal twenty twenty six Financial Results Conference Call.
All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question and answer session. There you. Toshiya Hari, you may begin your conference.
Toshiya Hari, Investor Relations, NVIDIA: Thank you. Good afternoon, everyone, and welcome to NVIDIA’s conference call for the first quarter of fiscal twenty twenty six. With me today from NVIDIA are Jensen Huang, president and chief executive officer and Colette Kress, executive vice president and chief financial officer. I’d like to remind you that our call is being webcast live on NVIDIA’s investor relations website. The webcast will be available for replay until the conference call to discuss our financial results the second quarter of fiscal twenty twenty six.....
March 22, 2024:
I Have Heard Of This Nvidia You Speak Of (first call for a $10 trillion market cap) NVDA
I have heard wondrous tales of immense wealth,
Of amazing deeds performed as if by magic.Yes I have heard*of all of this....but hang on one 'effin minute with the $10 trillion talk. Let's get to $1000 on the stock before we join Coleridge at the hookah. [In Xanadu did Kubla Khan...]
{adjust the $1000 by the 10:1 split effective June 10, 2024}
If I'm reading the decimal places correctly the company's market cap after-hours is $3.466 trillion.
Or $34 trillion if I squint real hard. (no hookah required)
In Xanadu did Kubla KhanA stately pleasure-dome decree:Where Alph, the sacred river, ranThrough caverns measureless to manDown to a sunless sea....
