Nvidia boosts its revenue by 262% due to AI and earns seven times more in its first fiscal quarter

Its shares break the $1,000 barrier after announcing results and a 150% dividend increase

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The American manufacturer of microprocessors and graphics cards Nvidia has once again exceeded expectations by obtaining a net profit of 14,881 million dollars (about 13,747 million euros) in the first quarter of its fiscal year (from February to April), which represents multiply by more than seven the profits of 2,043 million dollars (1,887 million euros) that it achieved in the same period of the previous year (+628%).

In the heat of Artificial Intelligence (AI), Nvidia boosted its revenue by 262% in its first fiscal quarter, to the record figure of 26,044 million dollars (24,059 million euros), thus multiplying the sales obtained by the company by more than three. company in the same period last year.

Nvidia’s revenue between February and April was boosted by its data center business, with a record turnover of 22.6 billion dollars (20.878 million euros), a figure that multiplies by more than five (+427%) that of the same period of 2023.

After the presentation of its results, Nvidia shares in the after-hour market soared by just over 6% and surpassed the barrier of $1,000 per share. Specifically, they stood at $1,006.9 per share.

“The next industrial revolution has begun: companies and countries are partnering with Nvidia to change traditional trillion-dollar data centers for accelerated computing and a new type of data centers – AI factories – to produce a new raw material: Artificial Intelligence”, highlighted Jensen Huang, founder and CEO of the company.

Huang also assured that AI “will bring significant productivity improvements to almost all industries and help companies become more cost and energy efficient, while expanding revenue opportunities.”

Looking ahead to its second fiscal quarter, the company expects a new revenue record of around $28 billion (25,867 million euros) and a gross margin of 74.8%.

‘SPLIT’ AND INCREASE IN THE DIVIDEND BY 150%

Nvidia has also announced that it will carry out a split of its common shares on June 7 “in order to facilitate the access of employees and investors to their ownership.”

This ‘split’, the company has specified, will be carried out through a modification of the company’s articles of incorporation, which will give rise to a proportional increase in the number of authorized ordinary shares.

Each holder of common shares at market close on Thursday, June 6, will receive nine additional common shares, which will be distributed after market close on Friday, June 7, as explained by the microprocessor manufacturer.

Nvidia has also announced that it will increase its quarterly cash dividend by 150%, from $0.04 per share to $0.10 per common share.

This dividend, equivalent to $0.01 per share after the split, will be paid on Friday, June 28 to all shareholders who were registered on June 11.