After the US stock market closed on Wednesday local time, Nvidia released its first quarter financial report. Data shows that the company's revenue for the first quarter of fiscal year 2025 was $26.044 billion, a year-on-year increase of 262.12%, compared to analysts' previous forecast of $24.65 billion. The net profit was 14.881 billion US dollars, a year-on-year increase of 628%. Among them, the sales of the data center department increased by 427%, reaching $22.6 billion. Nvidia expects an adjusted gross profit margin of 75.5% in the second quarter.
As of the close of the US stock market on that day, Nvidia had fallen slightly by 0.46%, but continued to rise after hours, with gains exceeding 7% at one point, breaking through $1000 and reaching a historic high. At the same time, Nvidia is sending signals to the market, driven by the demand for artificial intelligence, The sales of GPU chips will not slow down.
It is worth noting that Nvidia has become the world's highest semiconductor company by market value, with market values approaching those of TSMC, Samsung Electronics AMSL、 Botong The total number of global leading semiconductor companies, such as AMD, ranks second to sixth on the global market capitalization list. Specifically, Nvidia's market value reached $2.34 trillion, while TSMC and Samsung Electronics had market values of $809.9 billion and $380 billion, respectively, AMSL、 Botong AMD's market capitalization is $366.1 billion, $645 billion, and $265 billion, respectively.
After NVIDIA announced its results, the stock prices of artificial intelligence related chip manufacturers AMD and Broadcom both rose by about 2%. The rise in NVIDIA's stock price has also driven NVIDIA founder and CEO Huang Renxun's salary to exceed $100 million last year. Equity rewards account for the majority of executive compensation in enterprises. Last year, Nvidia's stock price rose by 200%, and Huang Renxun's stock value also doubled to $107.5 million, far exceeding the initial $34.2 million salary report.
In addition, among the top 25 executives with the highest salaries in the 2023 corporate executive compensation ranking, 8 came from the technology industry, such as Broadcom, Nvidia, and others AMD CEO is on the list. Among them, Hock Tan, CEO of Broadcom, received a salary of $162 million in 2023, ranking first, AMD CEO Su Zifeng's salary is approximately $30 million, making her the second highest paid female executive in the world.
During a conference call with analysts, Huang Renxun stated that Nvidia's latest Blackwell AI chip will begin shipping this fiscal quarter and is expected to increase production in the next quarter.
Huang Renxun stated that Amazon, Google Meta、 Microsoft OpenAI、 Oracle, Tesla, and Musk's artificial intelligence company xAI will become the first users of the new generation of chips; In addition, up to 20000 generative AI startups are queuing up to purchase GPUs launched through cloud service providers.
"The customer has put a lot of pressure on us to deliver the system as soon as possible and put it into use," he said.
Colette Kress, Chief Financial Officer of Nvidia, stated that, The supply shortage of Blackwell chips may continue until next year.
Nvidia occupies over 80% of the global AI chip market, serving as both the biggest driver and beneficiary of the rapid development of artificial intelligence.
Nvidia stated that, The most important customers of GPUs are large cloud providers, such as Amazon Cloud Technology AWS, Microsoft Azure, Google Cloud, and Oracle Cloud. The company claims that these "big customers" accounted for 40% of Nvidia's $22.56 billion in data center sales for the quarter.
Kress told investors that cloud service providers have seen "immediate and strong investment returns" from the GPUs purchased by Nvidia. She said that if the cloud provider spends $1 on Nvidia hardware, they can rent it out for $5 over the next four years. This statement attempts to dispel investor concerns and encourage companies to continue investing in artificial intelligence infrastructure.
Analysts believe that if Nvidia's chips can provide strong and sustainable investment returns, it indicates that there may still be room for growth in the early stages of the artificial intelligence boom and when planning long-term projects for businesses.
In addition to cloud service providers, technology giants including Meta are also vying to purchase Nvidia chips. For example, Meta has announced plans to spend billions of dollars to purchase 350000 Nvidia GPUs and monetize its investment in AI through advertising and AI chatbot services.
Kress takes Nvidia's HDX H200 server product as an example, which consists of 8 GPUs and provides access to Meta's Llama AI model. "At the current price, for every $1 spent on NVIDIA HDX H200 servers, The API provider of Llama 3 can generate $7 in revenue within four years She said.
Nvidia's GPU is installed in the server rack, can be loaded into the data center, connected through the Internet, and then leased to customers on an hourly basis. For example, The current rental price for Nvidia H100 from AI cloud computing company CoreWeave is $4.25 per hour. The company has just released a $7.5 billion financing plan to expand its data center.