In Q1 2025, Nvidia reported record quarterly revenue of $26.0 billion, up 18% from Q4 and up 262% from a year ago4. The company also announced a 10-for-1 forward stock split effective June 7, 2024, and a quarterly cash dividend raise of 150% to $0.01 per share on a post-split basis.
Nvidia is considered a "picks-and-shovels play" for AI because it supplies the necessary hardware, specifically graphics processing units (GPUs), that enable the development and scaling of AI technologies4. Its GPUs are crucial in powering large language models and generative AI, making it a key player in the AI market5.
Nvidia's proprietary software is a significant factor in its valuation as it enhances the functionality of the company's best-in-class chips, particularly in the context of AI applications. Analysts anticipate that the software aspect will become increasingly important in the next decade, potentially increasing the overall sales mix and providing an upward bias to Nvidia's valuation due to its sustainability.