Shares in Nvidia (NASDAQ:NVDA) rose more than 6% in premarket trading on Thursday following the release of the semiconductor giant’s highly anticipated first-quarter results, which revealed a significant revenue surge. CEO Jensen Huang highlighted the soaring demand for the company’s forthcoming AI-optimized chip as a key driver of growth.
Nvidia, headquartered in California, has seen its data center graphics processing units become integral to the development of generative AI products. This success has positioned Nvidia’s performance as a barometer for AI demand, influencing broader market sentiment. U.S. stock futures were buoyed by the positive report.
“The next industrial revolution has begun,” Huang stated. “AI will bring significant productivity gains to nearly every industry, enhancing cost- and energy-efficiency while expanding revenue opportunities.”
During a post-earnings call, Huang assured investors that the company expects substantial revenue this year from its Blackwell chip line, indicating sustained momentum in the AI sector. He also mentioned that additional chips will be released following Blackwell as part of a “one-year rhythm” of new launches.
For the quarter ending April 28, Nvidia’s revenue soared by 262% year-over-year to $26 billion, surpassing Wall Street estimates of $24.7 billion. This growth occurred despite increasing competition from rivals such as AMD (NASDAQ:AMD) and Intel (NASDAQ:INTC). Data center revenue, which largely represents Nvidia’s AI chips, jumped 427% year-over-year to a record $22.6 billion.
Adjusted earnings per share (EPS) surged to $6.12, up from $1.09 a year earlier, and exceeded analyst expectations of $5.58.
Looking ahead, Nvidia projects its group-wide revenue to grow to $28 billion, plus or minus 2%, in the current quarter, surpassing analysts’ forecast of $26.8 billion. The company also expects an adjusted gross margin of 75.5% for the second quarter. Goldman Sachs analysts noted that both metrics met elevated investor expectations.
Additionally, Nvidia announced a ten-for-one forward stock split effective June 7, aiming to make its stock more accessible to employees and investors. Over the past year, Nvidia’s share price has climbed by 209%. The company also increased its quarterly cash dividend by 150% to $0.10 per share.
The continued strong demand for AI boosted Nvidia’s Asian suppliers, including memory chip manufacturers SK Hynix and Samsung Electronics, as well as contract semiconductor firm TSMC.
Stifel analysts praised Nvidia’s “strong start” to its 2025 trading year, describing the company as “the best-positioned supplier in AI computing and networks regardless of the workload.”