Nvidia Earnings Continue to Stun, Announces Stock Split and Dividend Boost – The Average Joe


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    Nvidia Earnings Continue to Stun, Announces Stock Split and Dividend Boost

    Noah Weidner

    May 22, 2024

    On Wednesday, semiconductor giant Nvidia ($NVDA) eased concerns about a slowdown in the industry with a blowout first-quarter report. The company achieved a record-breaking $26B in revenue, marking a 262% year-over-year (YoY) increase — sending $NVDA up ~4% in after-hours trading. It’s another win for Big Tech in America, signaling continued strength in the US stock market despite worries over reduced spending and prolonged high interest rates.

    • 87% of Nvidia’s revenue came from its data center business, which surged 427% YoY amid the AI boom — while its gaming and automotive segments showed double-digit growth.
    • Nvidia also made moves in shareholder-friendly initiatives, repurchasing over $7.7B worth of its own shares during the quarter — and announced a 10-for-1 stock split and raised its dividend by a substantial 150%, now standing at one cent per post-split share.

    Forward-looking: Investors will now turn their attention to Q2, with Nvidia projecting continued fast growth. The company has issued an aggressive revenue forecast of $28B, putting it on track for its first-ever $100B revenue year. CEO Jensen Huang says, “We are poised for our next wave of growth,” and that “AI will bring significant productivity gains to nearly every industry” — but we’ll have to ask GPT-4o how it feels about that.

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