NVIDIA has told investors that its first-quarter revenues were down 13% year-over-year to $7.19 billion, but up 19% from the previous quarter. The company is aiming for revenue to reach $11 billion in the second quarter, plus or minus 2% - investors will be keenly watching to see if the firm achieves this goal.
The company is a major beneficiary of the generative AI boom. Without its underlying hardware, many of the generative AI tools that are coming online now wouldn’t be possible.
“The computer industry is going through two simultaneous transitions — accelerated computing and generative AI,” said Jensen Huang, founder and CEO of NVIDIA.
“A trillion dollars of installed global data centre infrastructure will transition from general-purpose to accelerated computing as companies race to apply generative AI into every product, service and business process.
“Our entire data centre family of products — H100, Grace CPU, Grace Hopper Superchip, NVLink, Quantum 400 InfiniBand and BlueField-3 DPU — is in production. We are significantly increasing our supply to meet surging demand for them,” he said.
On the back of the generative AI explosion, NVIDIA has seen its data centre-related revenue hit a record $4.28 billion. That’s up 14% from a year ago and 18% compared to the previous quarter.
On the other hand, its first quarter gaming revenue was at $2.24 billion, down 38% from a year ago but up 22% from the previous quarter. Its Professional Visualization business was down 53% to a revenue of $295 million and its automotive business was up 114% to a record $296 million.
For any investors out there holding NVIDIA shares, the company said it will pay a cash dividend of $0.04 per share on June 30, 2023, to all shareholders who are on record as of June 8, 2023. During the first quarter, it paid out $99 million in cash dividends to shareholders.
At the end of the trading day yesterday, NVIDIA stock was trading at around $305 per share. In after-hours trading when the first quarter results were announced, the stock price shot up and sits at $380 at the time of writing.