Jessie A Ellis
29 Aug 2024 09:56
NVIDIA announced record revenue for its second quarter of fiscal 2025, driven by increased data center demand and significant earnings per share growth.
NVIDIA Corporation (NASDAQ: NVDA) reported record revenue of $30 billion for its second quarter of fiscal 2025, up 15% from the previous quarter and up a whopping 122% from the same period last year, according to the NVIDIA Newsroom.
Sales and earnings growth
The company’s gross margin for the second quarter was 75.1%, slightly lower than 78.4% in the prior quarter but higher than 70.1% a year ago. Operating expenses increased 12% from the first quarter to $3.932 billion, reflecting the company’s continued investment in research and development. Operating income was reported at $18.642 billion, up 10% from the prior quarter and up 174% from the prior year.
GAAP earnings per diluted share were $0.67, up 12% sequentially and 168% year-over-year. Non-GAAP earnings per diluted share were $0.68, up 11% quarter-over-quarter and 152% year-over-year.
Data Center Performance
NVIDIA’s data center segment contributed significantly to the record financial performance. Data center revenue reached $26.3 billion, up 16% Q1 and 154% year-over-year. The surge was driven by strong demand for NVIDIA’s Hopper and Blackwell architectures, which are instrumental in modernizing global data centers with accelerated computing and generative AI.
“Demand for Hopper remains strong, and expectations for Blackwell are enormous,” said Jensen Huang, founder and CEO of NVIDIA. “NVIDIA achieved record revenue as data centers around the world are powering to modernize their entire computing stack with accelerated computing and generative AI.”
Shareholder returns and stock splits
During the first half of fiscal 2025, NVIDIA returned $15.4 billion to shareholders through share repurchases and cash dividends. The company’s board of directors also authorized an additional $50 billion in share repurchases, effective August 26, 2024, with no expiration.
NVIDIA completed a 10-for-1 forward stock split on June 7, 2024. As a result, all shares and per-share amounts have been retroactively adjusted to reflect this stock split.
Future outlook
Looking ahead to fiscal year 2025 Q3, NVIDIA expects revenue to be approximately $32.5 billion (±2%). The company expects GAAP and non-GAAP gross margins to be approximately 74.4% and 75.0%, respectively, and estimates operating expenses to be $4.3 billion on a GAAP basis and $3 billion on a non-GAAP basis. The expected tax rate is set at 17% (±1%).
Sector Highlights
Beyond data centers, NVIDIA has seen growth across a range of sectors.
- gambling: Revenue was $2.9 billion, up 9% from the first quarter and 16% from the previous year.
- Professional visualization: Revenue was $454 million, up 6% from the first quarter and 20% year over year.
- automobile: Revenue was $346 million, up 5% from the first quarter and 37% from the previous year.
NVIDIA’s strong performance in these areas further solidifies its leadership in AI, gaming, and professional visualization, helping to solidify its position in the technology market.
Conference Calls and Webcasts
NVIDIA will host a conference call with analysts and investors today at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) to discuss its Q2 FY2025 financial results and forward-looking statements. A live webcast of the conference call will be available on NVIDIA’s investor relations website.
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