Nvidia (NVDA) announced impressive first-quarter earnings that exceeded expectations, along with a 10-for-1 stock split and a raised dividend. The company reported adjusted earnings per share (EPS) of $6.12 on revenue of $26 billion, a significant increase from the previous year. Analysts had expected EPS of $5.65 on revenue of $24.69 billion. Nvidia’s stock rose nearly 7% in pre-market trading.
CEO Jensen Huang credited the data center’s growth to strong demand for generative AI training and inference. Despite concerns about revenue from hyperscalers, Nvidia’s Data Center revenue soared to $22.6 billion, comprising 86% of total revenue. The gaming segment brought in $2.6 billion in revenue.
The stock split will be effective June 7, and the new dividend will be paid on June 28. Nvidia’s enhanced dividend follows similar moves by other tech giants like Meta and Alphabet. With the stock split, speculation arises about Nvidia potentially joining the Dow Jones Industrial Average.
