Nvidia (NVDA) stock breached the $1,000 per-share mark for the first time ever Thursday after the chipmaker and artificial intelligence (AI) bellwether beat expectations for its fiscal 2025 first quarter. The company also announced a 10-for-1 stock split and more than doubled its dividend.
In the three months ended April 28, Nvidia's saw its revenue climb to $26 billion from $7.2 billion in the year-ago period, while earnings per share jumped to $6.12 from $1.09. The impressive results were helped by strong data center revenue, which surged to $22.6 billion from $4.3 billion one year ago.
"The next industrial revolution has begun – companies and countries are partnering with Nvidia to shift the trillion-dollar traditional data centers to accelerated computing and build a new type of data center – AI factories – to produce a new commodity: artificial intelligence," Nvidia CEO Jensen Huang said in a statement. "AI will bring significant productivity gains to nearly every industry and help companies be more cost- and energy-efficient, while expanding revenue opportunities."
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The results handily beat Wall Street's expectations for earnings of $5.57 per share on $24.6 billion in revenue.
"Death, taxes, and NVDA beats on earnings," says Ryan Detrick, chief market strategist at Carson Group. "Even in the face of huge expectations, the company once again stepped up and delivered. The always important data center revenue was strong, while future revenue was also impressive. Bottom line, the bar was high and cleared it once again."
As for the shareholder friendly initiatives announced in Nvidia's quarterly report, the company said it decided to split its common stock in order to "make stock ownership more accessible to employees and investors." Based on NVDA's current price of roughly $1,037, shares will be trading closer to around $103.70 once the split goes into effect after the June 7 close.
Additionally, Nvidia raised its quarterly dividend 150% to 1 cent per share post-split.
Is Nvidia stock a buy, sell or hold?
Given the impressive long-term returns Nvidia has generated, it's unsurprising that Wall Street considers it one of the best stocks to buy. According to S&P Global Market Intelligence, the consensus analyst target price for NVDA stock is $1,152.57, representing implied upside of about 11% to current levels. Additionally, the consensus recommendation is a Strong Buy.
Financial service firm Wedbush is one of the most bullish outfits on Wall Street with a Buy rating and $1,200 price target on Nvidia stock.
"Jensen Huang's suggestion that not only is demand for H200 and Blackwell well ahead of supply, but also that NVDA 'expect(s) demand may exceed supply well into next year,' parallels our view that NVDA will continue to outperform expectations," says Wedbush analyst Matt Bryson, adding that he doesn't expect headwinds to appear until mid-2025 at the earliest.
With Nvidia hitting the "'fast-forward' button," Bryson sees "no reason to moderate our enthusiasm around NVDA and we are reiterating our Outperform [Buy] rating on the stock."
Related Content
- What Are the Magnificent 7 Stocks?
- The 30 Best Stocks of the Past 30 Years
- Will Amazon's Updated Alexa Include a Subscription? What To Know
-
Why I Trust Bonds, Even NowColumnist Jeffrey Kosnett explains why he stands by investing in bonds.
-
An Estate Planning Attorney's Guide to the Importance of POAsRegularly updating your financial and health care power of attorney documents ensures they reflect your current intentions and circumstances. It's also important to clearly communicate your wishes to your chosen agents.
-
Divorce and Your Home: An Expert's Guide to Avoiding a Tax BombYour home is probably your biggest asset, so if you're getting a divorce, the stakes are high. Keep it? Sell it? You need to have a good plan in place for how to handle it.
-
Stock Market Today: Stocks Grapple for Peace Trade GainsOf course dramatic tension is high on Fed Day, only this time it's about war and peace as well as monetary policy.
-
Fewer Agents, Fewer Audits: How IRS Staff Cuts Are Changing EnforcementSignificant reductions in the IRS workforce appear to be increasing the number of 'no change' audit closures. The shift could potentially increase the overall tax gap — the difference between taxes that should have been paid and those that were.
-
What if You Could Increase Your Retirement Income by 50% to 75%? Here's HowCombining IRA investments, lifetime income annuities and a HECM into one plan could significantly increase your retirement income and liquid savings compared to traditional planning.
-
Here's Why You Shouldn't Do an Estate Plan Without a Financial PlannerEstate planning isn't just about distributing assets. Working with a financial adviser can ensure you've considered the big picture — and the finer details.
-
Stock Market Today: Rally Pauses for "Real End" to Middle East WarThe future is uncertain by nature, but it's hard to recall a time when views on what's next have been this volatile from day to day.
