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Nvidia (NVDA) Q1 2025 Earnings Report
- Earnings per share: $5.59, adjusted
- Revenue: US$24.65 billion
The chipmaker, which a decade ago was a niche developer of 3D gaming hardware, found itself in the center of action in technology.
Nvidia’s report comes about a year after the company first signaled to investors that it was about to embark on a period of torrid growth driven by demand for artificial intelligence chips from companies like Google, Microsoft, Meta, Amazon and OpenAI.
Revenues have increased more than 200% in each of the last two quarters and Wall Street expects this trend to continue, with estimates showing a 243% increase in the first quarter from a year ago. Net profit is expected to increase more than five times from the previous year.
Nvidia shares have more than tripled since the company reported fiscal first-quarter earnings last year and provided surprisingly strong guidance for the second quarter.
The company’s current generation of AI graphics processing units (GPUs), called Hopper, are required by leading AI scientists to develop chatbots, translators and imagers. Over the past year, customers have been buying them in droves, with major cloud and Internet companies spending billions of dollars on technology to build their infrastructure.
But questions are emerging about the sustainability of Nvidia’s meteoric growth, as many customers need to start making a profit on all their hefty expenses. AI software costs significantly more to run than traditional software, in part due to the expense required for Nvidia GPUs.
Nvidia is also starting to ship its next-generation AI GPUs, called Blackwell. Some companies may be eyeing upcoming chips, causing a potential pause in sales of existing technology.
Starting in the fiscal second quarter, Nvidia will face tough year-over-year comparisons to the early days of AI-driven growth. Analysts expect expansion to fall below 100% in the July quarter and slow significantly in the following two periods.