NVIDIA hits $30bn revenue milestone in Q2 FY2025 – Unveils groundbreaking AI technologies and massive stock buyback

NVIDIA Corporation (NASDAQ: NVDA) reported impressive financial results for the second quarter ended July 28, 2024. The company achieved a revenue of $30.0 billion, reflecting a significant 15% increase from the previous quarter and a staggering 122% rise from the same period last year. The surge in revenue underscores NVIDIA’s strong market performance and expanding influence across various sectors.

In terms of earnings, NVIDIA’s GAAP earnings per diluted share reached $0.67, marking a 12% increase sequentially and a remarkable 168% increase year-over-year. Non-GAAP earnings per diluted share stood at $0.68, up 11% from the previous quarter and 152% from the previous year. These figures highlight NVIDIA’s robust financial health and operational efficiency.

Jensen Huang, NVIDIA’s founder and CEO, commented on the company’s performance: “Hopper demand remains strong, and the anticipation for Blackwell is incredible. NVIDIA achieved record revenues as global data centers are in full throttle to modernize the entire computing stack with accelerated computing and generative AI.” Huang also emphasized the company’s advancements in AI technologies and data center capabilities, noting that “Blackwell samples are shipping to our partners and customers.”

Shareholder Returns and Stock Split

During the first half of fiscal 2025, NVIDIA returned a substantial $15.4 billion to shareholders through share repurchases and cash dividends. As of the end of the second quarter, the company had $7.5 billion remaining under its share repurchase authorization. Additionally, on August 26, 2024, NVIDIA’s Board of Directors approved an additional $50.0 billion in share repurchase authorization, which does not have an expiration date.

NVIDIA will distribute its next quarterly cash dividend of $0.01 per share on October 3, 2024, to all shareholders of record as of September 12, 2024. The company also completed a ten-for-one forward stock split on June 7, 2024, with all share and per-share amounts adjusted retroactively.

Outlook for Q3 FY2025

Looking ahead, NVIDIA projects revenue of $32.5 billion for the third quarter of fiscal 2025, with a margin of plus or minus 2%. The company expects GAAP and non-GAAP gross margins to be 74.4% and 75.0%, respectively, plus or minus 50 basis points. Operating expenses are anticipated to be approximately $4.3 billion (GAAP) and $3.0 billion (non-GAAP), with full-year growth in the mid- to upper-40% range. The company also forecasts GAAP and non-GAAP other income and expense to be around $350 million.

Sector-Specific Highlights

NVIDIA Data Center Sector

NVIDIA’s data center revenue reached a record $26.3 billion, reflecting a 16% increase from the previous quarter and a 154% increase year-over-year. The company announced the latest industry-standard MLPerf benchmark results, showcasing the superior performance of NVIDIA H200 Tensor Core and Blackwell architecture B200 Tensor Core processors. NVIDIA also launched a suite of products, including Spectrum-X Ethernet and NVIDIA AI Enterprise software, marking significant progress in data center-scale platforms.

NVIDIA Gaming and AI PC Sector

Gaming revenue for the second quarter was $2.9 billion, up 9% from the previous quarter and 16% year-over-year. NVIDIA introduced new technologies, such as NVIDIA ACE and Project G-Assist, aimed at enhancing gaming experiences through generative AI. The company also expanded its GeForce NOW service and added new titles to its RTX game lineup.

NVIDIA Professional Visualization Sector

Professional Visualization revenue for Q2 was $454 million, marking a 6% increase from the previous quarter and a 20% increase from the previous year. NVIDIA continues to innovate in generative AI models and professional visualization technologies.