Nvidia share price surges 6% after robust performance in Q1
Nvidia share price jumped as much as 6 per cent in afterhours trading on Wall Street after the IT giant posting record-breaking revenue and data center sales for the first quarter.
The IT giant stock climbed to $142.22 apiece on Nasdaq in afterhours trading, against previous close at $135.50.
The company posted fiscal first-quarter revenue of $44.06 billion, marking a 69% increase compared to the same period last year and surpassing analysts' forecast of $43.31 billion.
Adjusted earnings per share were $0.96, exceeding the expected $0.93. Net income climbed to $18.8 billion, or $0.76 per share, up from $14.9 billion in the previous year.
Nvidia's data center unit—which includes its AI chips and networking products—achieved a record $39.1 billion in sales, marking a 73% increase year over year. This segment now contributes a massive 88% of the company's overall revenue. According to CFO Colette Kress, Microsoft alone has already deployed 'tens of thousands' of Nvidia's Blackwell GPUs and is projected to expand that number to 'hundreds of thousands.'
For the quarter, GAAP and non-GAAP gross margins were 60.5% and 61.0%, respectively. Excluding the $4.5 billion charge, first quarter non-GAAP gross margin would have been 71.3%.
For the quarter, GAAP and non-GAAP earnings per diluted share were $0.76 and $0.81, respectively. Excluding the $4.5 billion charge and related tax impact, first quarter non-GAAP diluted earnings per share would have been $0.96.
"Our breakthrough Blackwell NVL72 AI supercomputer — a 'thinking machine' designed for reasoning— is now in full-scale production across system makers and cloud service providers,' said Jensen Huang, founder and CEO of NVIDIA.
Huang added, "Global demand for NVIDIA's AI infrastructure is incredibly strong. AI inference token generation has surged tenfold in just one year, and as AI agents become mainstream, the demand for AI computing will accelerate. Countries around the world are recognizing AI as essential infrastructure — just like electricity and the internet — and NVIDIA stands at the center of this profound transformation.'
The company also announced a cash dividend of $0.01 per share on July 3, 2025, to all shareholders of record on June 11, 2025.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
33 minutes ago
- Time of India
Trump Tariffs and .... How Microsoft is the biggest winner this earnings season for Big Tech
Microsoft Corp. shares are within 1.5% of their all-time high from July 2024, driven by a robust 16% gain in May 2025, the stock's best monthly performance in over three years, according to Bloomberg. The rally reflects a broader U.S. equity rebound and renewed confidence in Microsoft's Azure cloud-computing business, fueled by strong artificial intelligence (AI) demand. Azure's fiscal third-quarter revenue grew 33%, surpassing Wall Street expectations, with non-AI services like databases and storage outperforming, as noted by CFO Amy Hood. The stock's resurgence contrasts with its 2024 performance, when Microsoft lagged behind the 'Magnificent Seven' peers -- Apple, Nvidia, Alphabet, Amazon, Meta, and Tesla -- with a 12% gain, weighed down by concerns over Azure growth and AI competition. In 2025, Microsoft's 9% advance has outpaced most peers except Meta (up 10%), bolstered by limited exposure to President Trump's tariffs and strong Big Tech earnings. Analysts see Microsoft as the biggest Big Tech winner this earnings season. Analysts are optimistic, with TD Cowen projecting Azure's AI-related revenue to soar to $24 billion by fiscal 2026, up from $4 billion in 2024. They raised their price target to $540, implying an 18% upside from Wednesday's close, as reported by Bloomberg. Of 72 Bloomberg-tracked analysts, 66 recommend buying Microsoft, with only six holding neutral ratings and none advising to sell. TD Cowen noted that Azure's mid-30% growth trajectory could drive renewed investor interest in Microsoft. Despite trading at a premium—30 times forward profits compared to the Nasdaq 100's 26 times—some see limited short-term upside after recent sideways trading, per Nancy Tengler of Laffer Tengler Investments. However, Kevin Walkush of Jensen Investment Management remains bullish, citing Microsoft's ability to monetize high-margin AI services. 'Microsoft is probably one of the best long opportunities in AI,' Walkush told Bloomberg, highlighting its capacity for sustained revenue growth. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Trading CFD dengan Teknologi dan Kecepatan Lebih Baik IC Markets Mendaftar Undo Microsoft's Azure platform powers AI tools like OpenAI's ChatGPT, alongside traditional cloud services. The company's strategic AI investments, including partnerships and infrastructure expansion, position it to capitalize on growing enterprise demand. Recent Twitter posts echo this sentiment, with users noting Microsoft's AI-driven cloud dominance and stock resilience, though some caution about valuation concerns given its premium pricing.
Mint
42 minutes ago
- Mint
Microsoft layoffs: What CEO Satya Nadella told employees in town hall on layoffs that left 6,000 jobless
Microsoft Chief Executive Satya Nadella has spoken out for the first time following the company's recent decision to cut approximately 6,000 jobs — about three per cent of its global workforce — emphasising that the move was part of a broader internal restructuring and not a reflection of employee performance. Addressing staff during a companywide town hall meeting, Nadella said the layoffs were necessary to realign teams in accordance with Microsoft's evolving priorities, particularly its growing focus on artificial intelligence. He acknowledged the emotional toll of the decision but underscored that it was driven by strategic shifts, not shortcomings in productivity or talent. You may be interested in The job cuts have disproportionately affected engineering roles — a notable development given the traditional perception of these positions as secure. The move highlights a shift in the tech industry, where even product development teams are being reshaped amid the accelerating integration of AI technologies. During the same internal event, executives highlighted Microsoft's significant momentum in selling AI tools to enterprise customers. Chief Commercial Officer Judson Althoff revealed that British banking giant Barclays has committed to purchasing 100,000 licences for Microsoft Copilot — the company's flagship AI assistant. Althoff also noted that several major global firms, including Accenture, Toyota, Volkswagen, and Siemens, now each have over 100,000 users of Copilot within their organisations. Nadella stressed the importance of tracking how deeply Copilot is embedded across client operations, with Microsoft paying close attention to the proportion of users actively engaging with the tool. At a list price of $30 per user per month, the scale of these contracts suggests annual revenues in the tens of millions of dollars — although actual figures are likely reduced by bulk pricing agreements. The developments reflect Microsoft's pivot toward enterprise AI as a key growth area, even as the company trims its workforce to maintain efficiency and focus.
Economic Times
an hour ago
- Economic Times
US stock market futures today: Dow, S&P 500, and Nasdaq hold steady as Trump tariff threat, inflation data, and China trade stall shake investor confidence
Stock futures today stay flat as Trump's trade tariffs rattle markets and investors await Fed's key inflation data. Dow Jones, S&P 500, and Nasdaq hold gains, while Asia sees losses. PCE report could signal Fed's next move. Stock Futures Hold Steady as Markets Brace for Fresh Trade Developments and Inflation Data- Stock futures stayed largely unchanged early Friday as investors await new trade developments and the latest inflation figures. The uncertainty around U.S. trade policy and key economic data has markets treading carefully, especially after a volatile week marked by legal battles over tariffs and shifting investor sentiment. Dow Jones Industrial Average futures rose 32 points (+0.08%) S&P 500 futures slipped 2 points (-0.04%) Nasdaq-100 futures dipped 15 points (-0.09%) Futures tied to the Dow Jones Industrial Average hovered just below the flatline, while S&P 500 and Nasdaq-100 futures also showed minimal movement. The muted action comes as traders digest a flurry of trade-related headlines. President Donald Trump's proposed tariffs are back in the spotlight after a U.S. court ruling briefly halted them, only to be reinstated on appeal. The Trump administration is reportedly considering a different legal route using the Trade Act of 1974 to impose 15% tariffs for 150 days, according to The Wall Street Journal . This legal workaround comes after the Court of International Trade blocked most of the tariffs on Wednesday. However, a stay from an appeals court on Thursday temporarily allowed the tariffs to remain in place through next week. Gap Inc. (GPS) : Shares plunged over 17% premarket after the retailer posted a weaker-than-expected Q2 outlook, citing consumer spending pressure. : Shares plunged over 17% premarket after the retailer posted a weaker-than-expected Q2 outlook, citing consumer spending pressure. Ulta Beauty (ULTA) : Stock soared 7% following a strong earnings beat and solid same-store sales growth, driven by resilient beauty product demand. : Stock soared 7% following a strong earnings beat and solid same-store sales growth, driven by resilient beauty product demand. Dell Technologies (DELL): Gained 1.7% premarket after the company reported better-than-expected first-quarter revenue, supported by strong demand in enterprise services and AI-related products. Treasury Secretary Bessent told Fox News that U.S.-China trade talks are 'a bit stalled,' which discouraged traders who were hopeful for progress. These developments have added to growing concerns about the broader economic outlook. Fears are mounting that escalating trade tensions could hurt growth and potentially trigger a U.S. recession. Despite this backdrop, stocks are still on track for a strong May. The S&P 500 has climbed over 6%, the Nasdaq Composite surged 10%, and the Dow Jones gained around 4% this month. On a weekly basis, the S&P 500 rose about 2%, the Dow added 1.4%, and the Nasdaq gained 2.3%. Market analyst Ed Clissold of Ned Davis Research shared on CNBC's Closing Bell , 'There's good momentum heading into summer, but hard data may soon catch up to weaker soft data as we move into Q3.' Friday's trading may also see some pressure from U.S. pension fund rebalancing, with Goldman Sachs estimating around $20 billion in equity sales at the end of the month. Because equities strongly outperformed bonds in May, large institutions need to rebalance their portfolios to meet fixed asset. Investors now turn their attention to the Personal Consumption Expenditures (PCE) index, the Federal Reserve's preferred measure of inflation, due later today. A hotter-than-expected number could reignite fears of prolonged high interest rates. Despite the uncertainty, May appears on track to end with strong performance: The S&P 500 is up more than 6% this month The Nasdaq Composite has jumped over 10% The Dow Jones is up about 4% Analysts like Ed Clissold of Ned Davis Research say there's still positive momentum as we head into summer. However, he cautioned on CNBC's Closing Bell that 'hard data could catch up to soft data' in Q3, meaning economic fundamentals may start to reflect underlying weaknesses despite the recent market rally. Key focus areas in the coming days include: The fallout from Trump's proposed tariffs The direction of U.S.-China negotiations Inflation data and its impact on Fed policy Continued earnings reports from key retail and tech names Markets may remain choppy as investors seek clarity on both international trade policy and domestic inflation trends. What are stock futures doing amid tariff and inflation concerns? Stock futures are staying mostly flat as investors await more trade and inflation updates. How are Trump's trade tariffs affecting global markets? Trump's tariffs are adding pressure on global stocks, especially in Asia's tech and auto sectors.
