June 23, 2024


Just like the last several quarters, Nvidia beat Wall Street’s expectations on Wednesday, reporting a record first-quarter revenue of $26 billion for its 2025 fiscal year — up 262% from the previous year.

The chipmaker’s revenue for the quarter ending April 28 rose by 18% from its prior-quarter revenue of $22 billion, which also beat Wall Street’s sky-high expectations, and was up nearly 270% from the previous year.

Nvidia reported its data center quarterly revenue was a record $22.6 billion, up 23% from the previous quarter, and up 427% from a year ago. This revenue was driven by high demand for Nvidia’s Hopper GPUs, or graphics processing units, which are used for training and inferencing leading large language models (LLMs), Nvidia said. Meanwhile, demand for Nvidia’s H200 and Blackwell chips is exceeding supply, the company said on its earnings call. Nvidia chief executive Jensen Huang said the firm sees continuing demand for Hopper despite fears of a pause in demand as customers wait for Blackwell. He also announced that Nvidia has “other Blackwells coming,” and that the company is “in a one-year rhythm” with its chips.

Here’s what Wall Street is saying:

JPMorgan

JPMorgan analysts wrote in a note that they “were more impressed with the increasing breadth of the customer demand,” with enterprise customers driving most of Nvidia’s quarter-over-quarter growth, “in addition to consumer internet hyperscalers.” In the longer term, JPMorgan analysts wrote Nvidia “continues to maintain a 1- 2 step lead ahead of competitors with its silicon/hardware/software platforms,” and is “further distancing itself with its aggressive cadence of new product launches and more product segmentation over time.”

Bank of America

Bank of America analysts wrote in a note that they believe Nvidia’s profit margins have peaked, adding that the AI chipmaker could see increased margins if it makes an effort to sell software products for autos and gaming on top of its chip business.

Jeffries

Jeffries analysts wrote in a note that demand for Nvidia’s chips “is expected to outpace supply well into next year,” as production of its Blackwell platform ramps up. They added that strong demand suggests Nvidia recently increased capacity for the second half of fiscal year 2025, which “should dispel fears of an air pocket” in demand for the company’s chips.

Deutsche Bank

Deutsche Bank analysts wrote in a note they believe the most important metric of Nvidia’s earnings report was its “still-positive medium-term outlook” that demand will outpace supply “well into” 2025, and that demand for Hopper chips will continue growing despite Blackwell’s eventual release.

“As we continue to witness this streak of amazing fundamental and financial execution, we agree the magnitude and the pace of the technological innovation offered by the company is both impressive and unprecedented,” analysts wrote in their note.



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