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Nvidia tops $1,000 a share in afterhours trading on strong outlook, stock split

Published 23/05/2024, 06:44 am
© Reuters
- -- Nvidia reported Wednesday upbeat guidance for the current quarter as first-quarter results topped Wall Street estimates, driven by robust AI-led demand in its data center business and the chipmaker also announced a ten-for-one forward stock split.

NVIDIA Corporation (NASDAQ:NVDA) was up more than 5% in afterhours trading following the report.

For the three months ended Apr. 28, Nvidia reported adjusted earnings of $6.12 per share on revenue of $26.04 billion, up from $1.09 a share on revenue of $7.19B a year earlier.  That topped analyst estimates for earnings of $5.58 a share on revenue of $24.53B.

The beat was driven by a 427% jump in data center revenue to $22.56B in Q1 from a year earlier, beating analyst estimates of $21.32B, underpinned by AI-led demand for hardware to train various AI applications including large learning models.

These jump in data center growth "reflect higher shipments of the NVIDIA Hopper GPU computing platform used for training and inferencing with large language models, recommendation engines, and generative AI applications," the company said.

Looking ahead to fiscal Q2, the company forecasts revenue of $28B, give or take 2%, that was above estimates for $26.54B. Adjusted gross margin was expected to come in at 75.5% for Q2.

Goldman Sachs (NYSE:GS) analysts said says both metrics "met elevated investor expectations."

Nvidia also announced a ten-for-one forward stock split starting Jun.7, to make its stock ownership more accessible to employees and investors.

The chipmaker hiked its quarterly cash dividend by 150% to $0.10 per share.

Senad Karaahmetovic contributed to this report.

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