NVIDIA stock trades near record territory as AI demand drives revenue and earnings growth

NVIDIA Corp. (ISIN US67066G1040) stock is trading close to its recent highs, with the chip designer’s latest reported quarterly results showing revenue of $26.0 billion and adjusted earnings per share of $0.61 after its stock split in 2024. According to NVIDIA’s most recent earnings release dated 22 May 2024, this performance reflects booming demand for its AI-focused data center products and a reset of the share count following the ten-for-one split.

Revenue up over 260 percent

In its fiscal 2025 first quarter, reported as the quarter ended 28 April 2024, NVIDIA generated revenue of $26.0 billion, compared with $7.19 billion in the same quarter a year earlier, an increase of around 261 percent year on year according to the company’s investor materials. Data center revenue in that quarter reached approximately $22.6 billion, rising from $4.28 billion in the prior-year period, which means data center sales grew more than fivefold as enterprises and cloud providers accelerated spending on AI infrastructure.

The same fiscal 2025 first quarter report indicated that NVIDIA’s adjusted earnings per share stood at $6.12 before the ten-for-one stock split, translating to $0.612 on a post-split basis, compared with $1.09 in the equivalent fiscal 2024 quarter on a pre-split basis. On a pre-split comparison, this represents an increase of more than 460 percent in adjusted earnings per share year on year, underlining the operating leverage from higher-margin AI accelerators and software-related offerings.

Margins and guidance signal AI strength

NVIDIA reported gross margin of around 78.4 percent on a GAAP basis in fiscal 2025 first quarter, up from approximately 64.6 percent a year earlier, reflecting the mix shift toward high-end data center GPUs and platforms. Operating income for the same period reached roughly $16.9 billion, compared with $2.24 billion in the prior-year quarter, underlining how revenue growth and margin expansion combined to deliver substantially higher profitability.

For the fiscal 2025 second quarter, NVIDIA issued revenue guidance of approximately $28.0 billion, plus or minus two percent, according to its published outlook in the May 2024 earnings materials. This guidance, if achieved, would represent sequential revenue growth of around 7.7 percent compared with the $26.0 billion reported for fiscal 2025 first quarter and would continue the company’s recent pattern of double-digit year-on-year growth in AI-driven data center revenue.

GeForce and AI platforms drive demand

A key driver behind these numbers is NVIDIA’s portfolio of GPUs and AI platforms, notably its GeForce products for gaming and its data center accelerators such as the H100 and newer architectures. In fiscal 2025 first quarter, NVIDIA’s gaming segment delivered revenue of around $2.65 billion, up from approximately $2.24 billion in the prior-year quarter, according to figures in its segment reporting, aided by demand for GeForce RTX graphics cards and improvements in the gaming PC market.

NVIDIA’s professional visualization and automotive segments contributed smaller shares of total revenue but still showed year-on-year growth. Professional visualization revenue reached roughly $427 million in fiscal 2025 first quarter, compared with about $295 million a year earlier, while automotive revenue rose to around $329 million from $296 million, reflecting growing adoption of NVIDIA’s DRIVE platforms and cockpit solutions in vehicles.

Stock and valuation context

On the stock side, NVIDIA completed a ten-for-one stock split effective around 7 June 2024, which reduced its share price while increasing the number of shares outstanding by a factor of ten. After the split, the company’s market capitalization remained above $2 trillion as of mid June 2024 based on post-split pricing and share count, placing NVIDIA among the largest companies in the world by equity value and highlighting the market’s expectations for sustained AI growth.

In valuation terms, the combination of rapid earnings growth and a high market capitalization has kept NVIDIA’s implied price-to-earnings and price-to-sales multiples elevated compared with many traditional semiconductor peers. However, the company’s revenue trajectory, with data center sales rising from $4.28 billion to $22.6 billion year on year in fiscal 2025 first quarter, and its margin expansion from roughly mid-sixties to high-seventies gross margin for the same comparison period, has provided a fundamental basis for investor interest in NVIDIA stock.

AI ecosystem and competitive landscape

NVIDIA sits at the center of the AI hardware and software stack, supplying GPUs, networking components, and platforms that underpin large language models, recommendation systems, and generative AI applications. The company’s CUDA software ecosystem and libraries for AI training and inference have created a strong lock-in effect, encouraging developers and enterprises to standardize on NVIDIA’s hardware where performance and software compatibility are critical.

From a competitive standpoint, traditional GPU competitors and custom accelerators from major cloud providers are seeking to capture parts of the AI compute market. Nevertheless, NVIDIA’s reported data center revenue trajectory, which expanded by more than five times year on year in fiscal 2025 first quarter, suggests that the company has so far maintained a leading position in high-end AI accelerators and end-to-end platform solutions, even as competition intensifies.

Product focus on GeForce for gamers

Within NVIDIA’s broader portfolio, the GeForce gaming line remains an important contributor to revenue and brand recognition. The company’s GeForce RTX graphics cards, based on architectures such as Ada Lovelace, enable real-time ray tracing and AI-driven upscaling technologies like DLSS, which improve visual fidelity and performance in modern games. In fiscal 2025 first quarter, the gaming segment’s approximately $2.65 billion in revenue, up around 18 percent from $2.24 billion a year earlier, illustrates how GeForce continues to benefit from upgrades and new title launches.

For retail investors, the GeForce business is a reminder that NVIDIA’s story is not only about data centers and enterprise AI, but also about consumer graphics and the broader PC ecosystem. As long as GeForce remains a sought-after brand among gamers and content creators, it provides diversification alongside data center revenue and can sometimes offer a counterbalance when enterprise demand cycles shift.

Shares near recent highs

NVIDIA stock is listed on Nasdaq under the symbol NVDA and has traded near its recent record highs in mid 2024, with the post-split share price reflecting the company’s updated capital structure and strong investor interest. As of 14 June 2024, NVIDIA’s market capitalization was reported at over $2.3 trillion based on Nasdaq pricing and the expanded share count after the ten-for-one split, underscoring its status as one of the most valuable constituents of the S&P 500 and Nasdaq 100 indices.

The combination of rapid data center revenue growth, rising gaming sales, higher margins, and ambitious guidance has kept NVIDIA stock at the center of the AI investment narrative. For investors, the key questions over the coming quarters will revolve around whether NVIDIA can continue to grow revenue from $26.0 billion in fiscal 2025 first quarter toward and beyond the $28.0 billion guided for fiscal 2025 second quarter, while maintaining gross margins near the high-seventies level and sustaining strong earnings growth per share after the stock split.