Nvidia posted $26B in Q1 revenue amid record AI GPU demand.
Nvidia reported record financial results for the first quarter of its fiscal year 2025, which ended on April 28, 2024. The company achieved a record quarterly revenue of $26.0 billion, up 18% from Q4 and up 262% year-over-year. Nvidia's GAAP net income for Q1 FY 2025 was $14.881 billion, up 21% from $12.285 billion in the previous quarter and up 628% from $2.043 billion in the same quarter a year before. The company's gross margin reached 78.4%, up significantly from 64.6% in Q1 FY2024, reflecting the overwhelming demand for its processors for AI and HPC workloads.
Datacenter has become Nvidia's dominant revenue source, hitting a record $22.563 billion, including networking, and increasing 427% year-over-year and 23% sequentially despite the company's inability to sell high-performance GPUs to China. Compute revenue reached $19.4 billion, up 478% year-over-year and 29% sequentially, driven by higher shipments of Hopper GPUs for AI applications, while InfiniBand networking revenue was $3.2 billion, up 242% year-over-year but down 5% sequentially due to supply timing. Large cloud providers represented mid-40% of datacenter revenue and drove significant growth with the deployment of Nvidia AI infrastructure. Jensen Huang, founder and CEO of Nvidia, stated: "Our datacenter growth was fueled by strong and accelerating demand for generative AI training and inference on the Hopper platform. Beyond cloud service providers, generative AI has expanded to consumer internet companies, and enterprise, sovereign AI, automotive and healthcare customers, creating multiple multibillion-dollar vertical markets."
Nvidia's other business segments showed mixed results. Gaming revenue increased to $2.647 billion, up 18% year-over-year but declined 8% sequentially due to seasonal trends, with growth driven by the launch of GeForce RTX 40 Super-series products. Professional Visualization revenue grew to $427 million, up 45% year-over-year but down 8% sequentially as channel inventory levels normalized and desktop workstation GPU sales declined. Automotive revenue reached $329 million, the highest result in a couple of years, with 11% year-over-year growth and 17% sequential growth driven by self-driving platforms and AI Cockpit solutions. OEM sales were $78 million, flat from $77 million in the same quarter a year ago and down from $90 million in Q4 FY2024.
For Q2 of fiscal 2025, Nvidia projects revenue of $28 billion ±2%, with GAAP and non-GAAP gross margins expected to be around 74.8% and 75.5%, respectively, and operating expenses anticipated to be approximately $4.0 billion on a GAAP basis and $2.8 billion on a non-GAAP basis. Huang emphasized the company's momentum: "We are poised for our next wave of growth. The Blackwell platform is in full production and forms the foundation for trillion-parameter-scale generative AI. Spectrum-X opens a brand-new market for us to bring large-scale AI to Ethernet-only data centers. And Nvidia NIM is our new software offering that delivers enterprise-grade, optimized generative AI to run on CUDA everywhere — from the cloud to on-prem data centers and RTX AI PCs — through our expansive network of ecosystem partners."
Nvidia announced a ten-for-one stock split effective June 7, 2024, aimed at making stock ownership more accessible, and increased its quarterly cash dividend by 150% to $0.01 per share on a post-split basis, payable on June 28, 2024.