Wow, exciting news from Nvidia! The chipmaker reported upgraded current-quarter guidance and first-quarter results that exceeded Wall Street estimates. This is all thanks to strong AI-led demand in its data center business. And that’s not all – Nvidia also announced a ten-for-one forward stock split.
NVIDIA Corporation (NASDAQ:) saw its stock price rise more than 2% following the announcement. Nvidia reported adjusted earnings of $6.12 per share on revenue of $26.04 billion, surpassing analyst estimates.
One of the key drivers behind this success was a staggering 427% jump in data center revenue to $22.56 billion in Q1 compared to a year earlier. This growth was fueled by the increasing demand for AI hardware to train various applications such as large learning models.
Looking ahead to fiscal Q2, Nvidia is forecasting revenue of $28 billion, which is above expectations. Additionally, the company announced a ten-for-one forward stock split starting Jun. 7 to make stock ownership more accessible to employees and investors.
Not stopping there, Nvidia also increased its quarterly cash dividend by 150% to $0.10 per share. This is a clear sign of confidence in the company’s future growth.