NVIDIA posts $44.1 billion Q1 revenue, up 69% year-over-year

SANTA CLARA, Calif. - NVIDIA (NASDAQ: NVDA) announced its financial results for the first quarter ended April 27, 2025, showing a significant revenue increase to $44.1 billion, which is a 12% rise from the previous quarter and a 69% increase from the same period last year. The company’s Data Center revenue was a substantial contributor to this growth, reporting $39.1 billion, marking a 10% increase from the previous quarter and a 73% rise year-over-year. With a market capitalization of $3.3 trillion and an impressive last twelve months revenue growth of 114.2%, NVIDIA continues to demonstrate its dominance in the semiconductor industry. According to InvestingPro analysis, the company currently appears overvalued compared to its Fair Value estimate.

Despite these gains, NVIDIA faced challenges due to new export licensing requirements by the U.S. government, which affected exports of its H20 products to the China market. Informed of this on April 9, 2025, NVIDIA incurred a $4.5 billion charge in the first quarter related to H20 inventory excess and purchase obligations after demand for these products declined. Prior to the export restrictions, sales of H20 products amounted to $4.6 billion for the quarter. The inability to ship an additional $2.5 billion of H20 revenue in the first quarter was a direct result of these new regulations. Nevertheless, NVIDIA maintains robust financial health with a perfect Piotroski Score of 9 and an impressive current ratio of 4.44, indicating strong liquidity to weather such challenges. InvestingPro subscribers can access 18 additional key insights about NVIDIA’s financial strength and market position.

The company reported that its GAAP and non-GAAP gross margins were 60.5% and 61.0%, respectively. However, if the $4.5 billion charge were excluded, the first quarter non-GAAP gross margin would have been 71.3%. As for earnings per diluted share, GAAP and non-GAAP figures were $0.76 and $0.81, respectively. Without the charge and related tax impact, first quarter non-GAAP diluted earnings per share would have been $0.96.

NVIDIA’s CEO, Jensen Huang, commented on the company’s AI infrastructure demand, which remains robust, and the full-scale production of the Blackwell NVL72 AI supercomputer. He emphasized the critical role of AI as essential infrastructure globally and NVIDIA’s central position in this transformation.

Looking forward, NVIDIA expects its second-quarter revenue to be around $45.0 billion, plus or minus 2%. This projection accounts for an approximate $8.0 billion loss in H20 revenue due to the recent export control limitations. The company is also aiming for GAAP and non-GAAP gross margins of 71.8% and 72.0%, respectively, and anticipates operating expenses to be approximately $5.7 billion on a GAAP basis and $4.0 billion on a non-GAAP basis. Trading at a P/E ratio of 46.09, NVIDIA commands a premium valuation that reflects its market leadership and growth potential. For detailed valuation analysis and expert insights, check out NVIDIA’s comprehensive Pro Research Report, available exclusively on InvestingPro.

NVIDIA plans to pay its next quarterly cash dividend of $0.01 per share on July 3, 2025, to shareholders of record as of June 11, 2025.

This article is based on a press release statement from NVIDIA.

In other recent news, Nvidia is set to release its earnings report, which is eagerly anticipated by investors. Analysts from Deepwater Asset Management have highlighted the impact of U.S. chip restrictions on China, which could reduce Nvidia’s revenue by approximately $15 billion over the next three quarters. Despite this, Nvidia is working on a new "Blackwell-lite" chip to potentially recover some of the lost revenue. Cantor Fitzgerald maintains an Overweight rating on Nvidia, expecting an earnings per share of $5.00 in 2025, which exceeds the consensus estimate. Piper Sandler also reiterated its Overweight rating, suggesting that despite potential near-term challenges, Nvidia’s prospects for the latter half of the year remain strong. Nvidia’s shares have surged ahead of the earnings report, outperforming other tech giants in the Magnificent Seven group. This rise reflects a positive market sentiment, with Nvidia leading the pack in premarket trading. Investors are keenly watching Nvidia’s upcoming earnings report for further insights into the company’s future performance.

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