NVIDIA Corporation (NVDA) Bundle
A Brief History of NVIDIA Corporation
NVIDIA Corporation, founded in 1993, has evolved into a powerhouse in the semiconductor industry, particularly known for its graphics processing units (GPUs). Over the years, NVIDIA has expanded its focus from gaming to encompass a wide range of applications, including artificial intelligence (AI), data centers, and automotive technologies.
Financial Performance Overview
As of July 28, 2024, NVIDIA reported significant growth in its financial performance. The company achieved a total revenue of $30.04 billion for the second quarter of fiscal year 2025, which reflects a remarkable increase of 122% compared to $13.51 billion in the same quarter of the previous year. For the first half of fiscal year 2025, total revenue reached $56.08 billion, up 171% from $20.70 billion in the first half of fiscal year 2024.
| Period | Revenue (in millions) | Year-over-Year Growth (%) |
|---|---|---|
| Q2 FY2025 | $30,040 | 122% |
| First Half FY2025 | $56,084 | 171% |
Segment Performance
NVIDIA's revenue growth was primarily driven by its Compute & Networking segment, which generated $26.45 billion in revenue for Q2 FY2025, an increase of 154% year-over-year. Graphics revenue also saw a 16% increase, totaling $3.59 billion for the same period.
| Segment | Q2 FY2025 Revenue (in millions) | Year-over-Year Growth (%) |
|---|---|---|
| Compute & Networking | $26,446 | 154% |
| Graphics | $3,594 | 16% |
Net Income and Earnings Per Share
NVIDIA reported a net income of $31.48 billion for the first half of fiscal year 2025, up from $8.23 billion in the same period of the previous year. The diluted earnings per share (EPS) for the second quarter was $0.67, compared to $0.25 in Q2 FY2024.
| Period | Net Income (in millions) | Diluted EPS |
|---|---|---|
| Q2 FY2025 | $16,599 | $0.67 |
| First Half FY2025 | $31,480 | $1.27 |
Operating Expenses
Operating expenses increased significantly, reaching $7.43 billion for the first half of fiscal year 2025, a 44% increase compared to $5.17 billion in the first half of fiscal year 2024. This increase was largely driven by higher research and development expenses, which totaled $5.81 billion for the first half of FY2025, representing a 48% increase year-over-year.
| Expense Type | First Half FY2025 (in millions) | Year-over-Year Growth (%) |
|---|---|---|
| Operating Expenses | $7,428 | 44% |
| Research and Development | $5,810 | 48% |
Market Position and Future Outlook
NVIDIA continues to dominate the GPU market, particularly in AI and data center applications. The company's strategic investments in research and development, along with a focus on new product launches, position it well for continued growth. As of July 28, 2024, NVIDIA's cash, cash equivalents, and marketable securities totaled $34.80 billion, ensuring robust liquidity for future initiatives.
| Liquidity Metrics | Amount (in billions) |
|---|---|
| Cash and Cash Equivalents | $8.56 |
| Marketable Securities | $26.24 |
| Total Liquidity | $34.80 |
With a strong financial foundation and a commitment to innovation, NVIDIA is poised to maintain its leadership in the technology sector well into the future.
A Who Owns NVIDIA Corporation (NVDA)
Major Shareholders
As of 2024, NVIDIA Corporation (NVDA) has a diverse ownership structure, comprising institutional investors, mutual funds, and individual shareholders. The top institutional shareholders include:
| Shareholder | Ownership Percentage | Shares Owned (in millions) | Type |
|---|---|---|---|
| The Vanguard Group | 8.1% | 1,975 | Institutional Investor |
| BlackRock, Inc. | 7.8% | 1,895 | Institutional Investor |
| Fidelity Investments | 4.2% | 1,020 | Institutional Investor |
| State Street Corporation | 4.1% | 1,000 | Institutional Investor |
| Capital Research Global Investors | 3.5% | 850 | Institutional Investor |
Insider Ownership
Insider ownership also plays a significant role in NVIDIA's equity structure. Key executives and board members hold substantial stakes:
| Name | Position | Shares Owned (in millions) | Ownership Percentage |
|---|---|---|---|
| Jensen Huang | CEO | 14.0 | 0.06% |
| Colette Kress | CFO | 1.5 | 0.006% |
| Jay Puri | EVP | 1.2 | 0.005% |
Public Ownership
The remainder of the shares is held by retail investors, hedge funds, and other public entities. As of July 2024, NVIDIA had approximately 24.6 billion shares outstanding.
Share Repurchase Program
NVIDIA has been actively repurchasing its shares to enhance shareholder value. The details of the recent share repurchase program are as follows:
| Period | Total Shares Purchased (in millions) | Average Price Paid per Share | Total Cost (in billions) |
|---|---|---|---|
| April 29, 2024 - May 26, 2024 | 23.0 | $91.50 | $2.1 |
| May 27, 2024 - June 23, 2024 | 14.7 | $121.36 | $1.8 |
| June 24, 2024 - July 28, 2024 | 25.1 | $123.63 | $3.1 |
| Total | 62.8 | - | $7.0 |
Dividend Policy
NVIDIA's dividend policy has been consistent, with recent dividends declared as follows:
| Period | Dividend per Share | Total Dividends Paid (in millions) |
|---|---|---|
| Q2 2025 | $0.01 | $246 |
| Q1 2025 | $0.01 | $344 |
Conclusion
NVIDIA Corporation's ownership landscape is characterized by significant institutional holdings, active insider participation, and a commitment to enhancing shareholder value through share repurchases and dividends.
NVIDIA Corporation (NVDA) Mission Statement
NVIDIA Corporation focuses on providing exceptional computing platforms that accelerate applications across various markets. Their mission emphasizes innovation in artificial intelligence (AI) and deep learning technologies. This commitment is reflected in their extensive investment in research and development, as well as their strategic initiatives to enhance their product offerings.
Financial Performance Overview
As of the second quarter of fiscal year 2025, NVIDIA reported significant financial growth:
| Metric | Q2 2025 | Q2 2024 | Year-Over-Year Change |
|---|---|---|---|
| Revenue | $30.04 billion | $13.51 billion | +122% |
| Gross Margin | 75.1% | 70.1% | +5.0 pts |
| Operating Income | $18.64 billion | $6.80 billion | +174% |
| Net Income | $16.60 billion | $6.19 billion | +168% |
| Net Income per Diluted Share | $0.67 | $0.25 | +168% |
Market Segments
NVIDIA's mission extends into key markets which include:
- Data Center
- Gaming
- Professional Visualization
- Automotive
Revenue by market segment for Q2 2025 is as follows:
| Market Segment | Revenue (Q2 2025) | Year-Over-Year Change |
|---|---|---|
| Data Center | $26.45 billion | +154% |
| Gaming | $2.90 billion | +16% |
| Professional Visualization | $454 million | +20% |
| Automotive | $346 million | +37% |
Geographic Revenue Distribution
NVIDIA's revenue is also diverse geographically, with a significant portion coming from international markets:
| Region | Percentage of Total Revenue (Q2 2025) |
|---|---|
| United States | 43% |
| International | 57% |
Stock Performance and Shareholder Returns
NVIDIA has actively managed its capital return strategy through dividends and share repurchase programs. Recent actions include:
| Action | Amount (Q2 2025) |
|---|---|
| Cash Dividends Paid | $246 million |
| Shares Repurchased | 62.8 million shares |
| Total Cost of Shares Repurchased | $7.0 billion |
Strategic Initiatives
NVIDIA's mission is further supported by its strategic initiatives, particularly in AI and deep learning technologies. The company has invested heavily in:
- Development of the Hopper GPU architecture for AI solutions.
- Enhancement of the Blackwell architecture, scheduled for production ramp in FY 2026.
- Expansion of AI Cockpit solutions within the automotive sector.
Future Outlook
Looking ahead, NVIDIA anticipates continued growth driven by:
- Increased demand for data center solutions.
- Expansion of gaming products and services.
- Innovation in automotive technologies.
The company expects to generate several billion dollars in revenue from Blackwell architecture in the fourth quarter of fiscal year 2025.
How NVIDIA Corporation (NVDA) Works
Business Segments
NVIDIA Corporation operates primarily through two segments: Compute & Networking and Graphics.
Compute & Networking Segment
This segment includes the Data Center accelerated computing platforms and artificial intelligence (AI) solutions, networking, and automotive platforms. For the second quarter of fiscal year 2025, the Compute & Networking revenue was:
| Revenue (in millions) | Change (Year-over-Year) | Operating Income (in millions) | Change (Year-over-Year) |
|---|---|---|---|
| $26,446 | 154% | $18,848 | 180% |
Graphics Segment
This segment includes GeForce GPUs for gaming and professional visualization. For the same quarter, the Graphics revenue was:
| Revenue (in millions) | Change (Year-over-Year) | Operating Income (in millions) | Change (Year-over-Year) |
|---|---|---|---|
| $3,594 | 16% | $1,369 | 13% |
Financial Performance
For the second quarter ended July 28, 2024, NVIDIA reported the following key financial metrics:
| Metric | Q2 FY 2025 | Q2 FY 2024 | Change (Year-over-Year) |
|---|---|---|---|
| Revenue | $30,040 million | $13,507 million | 122% |
| Gross Margin | 75.1% | 70.1% | 5.0 pts |
| Operating Income | $18,642 million | $6,800 million | 174% |
| Net Income | $16,599 million | $6,188 million | 168% | Net Income per Diluted Share | $0.67 | $0.25 | 168% |
Geographic Revenue Distribution
Revenue from sales to customers outside of the United States accounted for 57% of total revenue for Q2 FY 2025.
| Region | Revenue (in millions) |
|---|---|
| United States | $13,022 |
| Taiwan | $5,740 |
| Singapore | $5,622 |
| China (including Hong Kong) | $3,667 |
| Other countries | $1,989 |
Research and Development Expenses
NVIDIA's investment in research and development is significant, reflecting their focus on innovation:
| Period | R&D Expenses (in millions) | Percentage of Revenue |
|---|---|---|
| Q2 FY 2025 | $3,090 | 10.3% |
| Q2 FY 2024 | $2,040 | 15.1% |
Cash Flow and Dividends
NVIDIA's cash flow from operating activities for the first half of FY 2025 was:
| Metric | Amount (in millions) |
|---|---|
| Net Income | $31,480 |
| Cash Dividends Paid | $344 million |
Share Repurchases
NVIDIA has an active share repurchase program:
| Period | Total Shares Purchased (in millions) | Average Price Paid per Share | Approximate Dollar Value of Shares Remaining for Repurchase (in billions) |
|---|---|---|---|
| July 2024 | 62.8 | $123.63 | $53.9 |
Future Outlook
For fiscal year 2025, NVIDIA expects gross margins to remain in the mid-70% range, driven by continued demand for their products across all segments.
How NVIDIA Corporation (NVDA) Makes Money
Revenue Overview
NVIDIA Corporation generated a total revenue of $30.04 billion for the second quarter of fiscal year 2025, reflecting a 122% year-over-year increase from $13.51 billion in the same quarter of the previous year.
Business Segments
NVIDIA operates through several key business segments, each contributing significantly to its revenue. The main segments include:
- Compute & Networking: Revenue of $26.45 billion, up 154% year-over-year.
- Graphics: Revenue of $3.59 billion, up 16% year-over-year.
| Segment | Q2 Revenue (in millions) | Year-over-Year Change (%) |
|---|---|---|
| Compute & Networking | $26,446 | 154% |
| Graphics | $3,594 | 16% |
| Total Revenue | $30,040 | 122% |
Key Revenue Drivers
The significant growth in revenue is primarily attributed to:
- Data Center Revenue: This segment saw a growth of 154% year-over-year, driven by the demand for the Hopper GPU architecture, essential for AI applications and large language models.
- Gaming Revenue: Increased by 16% year-over-year, attributed to higher sales of the GeForce RTX 40 Series GPUs.
- Professional Visualization: Grew 20% year-over-year due to the demand for RTX GPU workstations.
- Automotive Revenue: Increased by 37% year-over-year, driven by AI cockpit solutions and advancements in self-driving technology.
Gross Profit and Margins
NVIDIA's gross profit for the second quarter was $22.57 billion, resulting in a gross margin of 75.1%, compared to 70.1% in the previous year.
Operating Income
The operating income for NVIDIA in the second quarter reached $18.64 billion, marking a substantial increase of 174% year-over-year.
Operating Expenses
Operating expenses totaled $3.93 billion, reflecting a 48% increase year-over-year. This increase was driven primarily by higher research and development costs.
Geographic Revenue Distribution
Revenue from international markets accounted for 57% of total revenue in the second quarter.
| Geographic Region | Q2 Revenue (in millions) |
|---|---|
| United States | $13,022 |
| Taiwan | $5,740 |
| Singapore | $5,622 |
| China (including Hong Kong) | $3,667 |
| Other Countries | $1,989 |
Cash Flow and Liquidity
NVIDIA generated $29.83 billion in cash from operating activities in the first half of fiscal year 2025, which is a significant increase compared to $9.26 billion in the same period last year.
Conclusion
NVIDIA's robust financial performance in 2024 is driven by strong demand across its key business segments, particularly in Data Centers and Gaming, complemented by effective cost management and a favorable market environment.
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