Nvidia stock pops 9%, tops $1,000 after earnings beat forecasts, announces stock split and dividend hike

Nvidia's stock surged 9.3%, surpassing the $1,000 mark for the first time, after reporting a significant earnings beat with first-quarter results showcasing a 461% increase in adjusted EPS and a 262% rise in revenue year-over-year. The company also announced a 10-for-1 stock split and increased its dividend, following trends set by other Big Tech companies.

The chipmaker's data center revenue, primarily driven by demand for AI training and inference on its Hopper platform, accounted for 86% of total revenue, reaching $22.6 billion. Despite concerns about competition from hyperscalers developing their own AI chips, Nvidia's CEO Jensen Huang remains optimistic about ongoing strong demand. The stock split and new dividend policy are set to take effect in June, potentially positioning Nvidia for inclusion in the Dow Jones Industrial Average.

Wall Street analysts have raised concerns about the significant portion of Nvidia's Data Center revenue derived from hyperscalers like Microsoft, Google, and Amazon, especially as these companies develop their own AI accelerator chips5. There are also concerns that Nvidia could face a demand lull as it shifts between its current and next generation of AI chips. However, Nvidia CEO Jensen Huang pushed back against these concerns, stating that the demand for data centers is very strong and people want to put their graphics processing units to work immediately. Despite the concerns, Nvidia's Data Center revenue increased 427% year-over-year to $22.6 billion, making up 86% of the company's total revenue for the quarter.