NVIDIA (NASDAQ:NVDA) Announces Earnings Results

NVIDIA (NASDAQ:NVDA) announced its quarterly earnings results on Wednesday. The computer hardware maker reported $1.87 EPS for the quarter, topping analysts’ consensus estimates of $1.76 by $0.11, FiscalAI reports. The business had revenue of $81.62 billion for the quarter, compared to analysts’ expectations of $78.42 billion. NVIDIA had a return on equity of 110.48% and a net margin of 62.97%.The business’s quarterly revenue was up 85.2% on a year-over-year basis. During the same period in the previous year, the firm earned $0.81 EPS.

Here are the key takeaways from NVIDIA’s conference call:

• Revenue and profitability hit records, with Q1 revenue of $82 billion up 85% year over year and free cash flow of $49 billion, while operating income also reached a new high.
• Data center growth remained exceptionally strong, led by Blackwell ramping across hyperscalers, AI clouds, model makers, and sovereign customers. Data center revenue rose to $75 billion, up 92% year over year.
• NVIDIA boosted shareholder returns by raising the quarterly dividend from $0.01 to $0.20 per share and authorizing an additional $80 billion in share repurchases.
• Management introduced a new reporting framework splitting the business into Data Center and Edge Computing, with Data Center further divided into Hyperscale and ACIE to better reflect AI infrastructure demand.
• Guidance points to continued growth, with Q2 revenue expected at $91 billion, plus or minus 2%, and management reiterated confidence in $1 trillion of Blackwell and Rubin revenue from 2025 through calendar 2027.

NVIDIA Price Performance

NVDA opened at $219.51 on Friday. The company has a debt-to-equity ratio of 0.05, a quick ratio of 3.24 and a current ratio of 3.91. NVIDIA has a 52-week low of $129.16 and a 52-week high of $236.54. The stock has a market capitalization of $5.32 trillion, a PE ratio of 33.62, a price-to-earnings-growth ratio of 0.69 and a beta of 2.25. The stock’s 50 day moving average price is $195.51 and its 200-day moving average price is $188.87.

NVIDIA Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, June 26th. Stockholders of record on Thursday, June 4th will be paid a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a dividend yield of 0.5%. This is a boost from NVIDIA’s previous quarterly dividend of $0.01. The ex-dividend date of this dividend is Thursday, June 4th. NVIDIA’s payout ratio is presently 0.82%.

NVIDIA declared that its board has initiated a stock buyback plan on Wednesday, May 20th that allows the company to buyback $80.00 billion in outstanding shares. This buyback authorization allows the computer hardware maker to repurchase up to 1.5% of its shares through open market purchases. Shares buyback plans are usually a sign that the company’s board believes its shares are undervalued.

NVIDIA News Summary

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Record Q1 revenue and EPS topped estimates, showing demand for NVIDIA’s AI chips remains exceptional.
• Positive Sentiment: Data center revenue surged again, confirming NVIDIA’s dominance in AI infrastructure and compute.
• Positive Sentiment: The company added an $80 billion buyback and sharply increased its dividend, signaling confidence and capital return strength.
• Positive Sentiment: NVIDIA’s venture arm backed French quantum startup Alice & Bob, reinforcing its strategic push into emerging compute technologies. Article Title
• Neutral Sentiment: Analysts lifted price targets across the board, but the stock’s response has been restrained as expectations remain extremely high.
• Neutral Sentiment: NVIDIA is reorganizing reporting into Data Center and Edge Computing, which better reflects the business but may make comparisons harder near term.
• Negative Sentiment: The company’s Q2 outlook excludes any Data Center compute revenue from China, leaving a meaningful market out of the near-term forecast.
• Negative Sentiment: Some investors remain cautious that AI competition is intensifying and that NVIDIA may be priced for perfection after a huge run.

Wall Street Analyst Weigh In

A number of equities analysts have commented on the company. Weiss Ratings reaffirmed a “buy (b)” rating on shares of NVIDIA in a research note on Friday, April 10th. Morgan Stanley set a $288.00 price target on NVIDIA and gave the stock an “overweight” rating in a research note on Thursday. Tigress Financial reaffirmed a “strong-buy” rating and issued a $360.00 price target (up from $350.00) on shares of NVIDIA in a research note on Thursday, March 5th. Wells Fargo & Company reaffirmed an “overweight” rating and issued a $315.00 price target (up from $265.00) on shares of NVIDIA in a research note on Tuesday, May 12th. Finally, Stifel Nicolaus set a $282.00 price target on NVIDIA and gave the stock a “buy” rating in a research note on Thursday. Four equities research analysts have rated the stock with a Strong Buy rating, forty-eight have assigned a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of “Buy” and an average price target of $298.58.

Insider Activity

In related news, Director Mark A. Stevens sold 221,682 shares of the company’s stock in a transaction on Friday, March 20th. The stock was sold at an average price of $173.68, for a total value of $38,501,729.76. Following the sale, the director directly owned 7,399,771 shares of the company’s stock, valued at $1,285,192,227.28. This represents a 2.91% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director John Dabiri sold 3,004 shares of the company’s stock in a transaction on Friday, March 13th. The stock was sold at an average price of $184.90, for a total value of $555,439.60. Following the completion of the sale, the director directly owned 14,788 shares in the company, valued at approximately $2,734,301.20. The trade was a 16.88% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 906,336 shares of company stock valued at $162,802,518. 4.17% of the stock is owned by insiders.

Institutional Investors Weigh In On NVIDIA

Several hedge funds and other institutional investors have recently added to or reduced their stakes in NVDA. Norges Bank purchased a new stake in NVIDIA in the fourth quarter worth $62,244,133,000. Cardano Risk Management B.V. grew its stake in NVIDIA by 896.4% in the fourth quarter. Cardano Risk Management B.V. now owns 78,123,960 shares of the computer hardware maker’s stock worth $14,570,119,000 after purchasing an additional 70,283,539 shares during the period. Capital Research Global Investors grew its stake in NVIDIA by 16.1% in the third quarter. Capital Research Global Investors now owns 165,377,852 shares of the computer hardware maker’s stock worth $30,855,564,000 after purchasing an additional 22,896,705 shares during the period. Laurel Wealth Advisors LLC grew its stake in NVIDIA by 15,496.1% in the second quarter. Laurel Wealth Advisors LLC now owns 21,865,525 shares of the computer hardware maker’s stock worth $3,454,534,000 after purchasing an additional 21,725,326 shares during the period. Finally, Eurizon Capital SGR S.p.A. purchased a new stake in NVIDIA in the fourth quarter worth $2,605,127,000. 65.27% of the stock is owned by hedge funds and other institutional investors.

NVIDIA Company Profile

NVIDIA Corporation, founded in 1993 and headquartered in Santa Clara, California, is a global technology company that designs and develops graphics processing units (GPUs) and system-on-chip (SoC) technologies. Co-founded by Jensen Huang, who serves as president and chief executive officer, along with Chris Malachowsky and Curtis Priem, NVIDIA has grown from a graphics-focused chipmaker into a broad provider of accelerated computing hardware and software for multiple industries.

The company’s product portfolio spans discrete GPUs for gaming and professional visualization (marketed under the GeForce and NVIDIA RTX lines), high-performance data center accelerators used for AI training and inference (including widely adopted platforms such as the A100 and H100 series), and Tegra SoCs for automotive and edge applications.