TMN - Nvidia

Nvidia Stock Pops on Earnings Beat, Pressuring Intel Shares

On Thursday, Nvidia Corp.’s shares soared after its first-quarter earnings for fiscal year 2025 beat expectations and the announcement of a stock split, which weighed on rival Intel Corp.

The Silicon Valley-based company’s stock skyrocketed by 9.32% to $1,037.99 apiece on May 23, closing above $1,000.00 for the first time. However, it lost 0.28% after hours, but market analysts predict a 2.43% increase to $1,063.20 per share on the coming trading day.

Nvidia has reported earnings per share (EPS) of $6.12 for the first quarter, surpassing the $5.59 market consensus by 9.48%.

That indicated an 18.60% quarter-over-quarter (QoQ) increase from $5.16 in the fourth quarter and a significant 461.47% year-over-year (YoY) rise from $1.09 in the same quarter of 2024.

Similarly, the semiconductor giant’s $26.04 billion revenue was 5.64% higher than the forecast of $24.65 billion. The figure represented a 17.83% QoQ growth from the previous quarter’s $22.10 billion and a 262.17% YoY advance from $7.19 billion in the same period the year before.

For the current year, Nvidia expects its revenue to lift by an annualized 7.53% to $28.00 billion with a 2.00% margin of error. Industry watchers project a more modest 1.92% YoY increase to $26.54 billion.

With the data center segment contributing 87.00% of total revenue, CFO Colette Kress highlighted the success of the NVIDIA Hopper graphics processing unit (GPU). The Hopper was optimized for large language model (LLM) inferencing for generative AI (GenAI) systems.

Intel Slides After Nvidia Stock Split Announcement

Nvidia capped the earnings call by revealing a 10-for-1 stock split, which Intel investors saw as a major threat.

Market specialists said the split may lead to the GPU maker’s admission into the Dow Jones Industrial (DJI) Average.

Hence, Nvidia may become the second semiconductor business listed in the Dow, immediately displacing Intel from the top spot. That would further keep the latter from gaining traction in the AI GPU market using its new Gaudi3 accelerator.

In addition, the chipmaker’s $128.05 billion valuation represents only 5.02% of Nvidia’s $2.55 trillion market capitalization. Losing the unique advantage of being the only GPU maker on the Dow will make it harder for Intel to expand its share in the AI market.

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