NVIDIA’s 10-for-1 deal

Hey Superheroes,

2024 has so far been a year of earnings growths, stock market highs, and… record prices for commodities. 

Gold, Copper and Silver all hit new historical highs recently, with them being up 20%, 33% and 34% over the year, respectively. As a country with a robust mining industry (yup we mean Australia), it might explain why the ASX 200 nearly recorded another new high this week. 

Here are this week’s stories.

NVIDIA’s revenue more than tripled over the last year

From US$7.2 million in Q1 2024 to US$26 million in Q1 2025. 

That level of growth is aspirational for a company of NVIDIA’s size. 

Not only that… NVIDIA recorded a 628% increase in net income over the same period. Yup, some big numbers here! 

📝 No other words but exceptional

Here’s how NVIDIA performed compared to analyst expectations:

• Revenue: US$24.65B expected vs US$26.04B actual (↑5.6%)
• Earnings per share: US$5.59 vs US$6.12 (↑9.5%)

The AI-driven company not only grew its numbers but also beat expectations across the board.

Another notable thing from its quarterly income statement is its operating expenses. While it grew revenue by 262% year-on-year, operating expenses only rose 39%. 

This may explain why NVIDIA’s net income increased a lot more than its revenue.

🔦 Spotlight on Data Center

Digging deeper into NVIDIA’s report shows that most of the growth came from its Data Center – its AI and high-performance computing segment.

Data Center contributed a significant $22.6 billion (or 87%) of NVIDIA’s total quarterly revenue. This number is up 427% year-on-year.

Within the three-month period, NVIDIA expanded collaborations with Amazon’s AWS, Google Cloud, Microsoft and Oracle to advance generative AI. The company is also set to release a new graphics processing unit (GPU) called Blackwell by the end of the year, with five of the Magnificent Seven expected to be some of its first customers.

The rest of NVIDIA’s revenues come from its other segments; Gaming and AI PC,  Professional Visualisation and Automotive and Robotics.

🛒 10-for-1 stocks

Alongside its earnings release, NVIDIA also announced a 10-for-1 stock split to happen on 7 June 2024. This means that NVIDIA investors will soon see their shareholding units increase by 10-fold and NVIDIA’S share price be a tenth of what it is.

Additionally NVIDIA raised its cash dividend to US$0.01 per share (post-split). This equates to approximately a 0.04% yield on its current share price.

NVIDIA’s shares have since topped US$1,000 and are up ~240% over the past year. 

🔦  Some other things we’re shining the Spotlight on:

• MISSED THE TARGET: Target missed earnings expectations, citing high inflation and lower discretionary income as the reason for slowing sales. Only 20% of Target’s revenues come from food compared to Walmart’s 60%, leading to Target potentially being more sensitive to economic cycles.
• XERO-ING IN ON PROFIT: Xero delivered better than expected profit of about NZ$175m for the year ending 31 March. This came after its loss of NZ$114m the year before that caused it to embark on a full restructuring program. Xero shares are now up over 8% for the week.
• A HARD MISUNDERSTANDING?: Two days after The Star announced takeover interest from Hard Rock, the latter came out and denied it. The Star later came out with a clarification, stating that it received interest from Hard Rock Hotels & Resorts [Pacific] and not directly from Hard Rock International.

Don’t forget that Wall Street will be closed on Monday for Memorial Day.

That’s all for this week’s Spotlight! 

Keep up to date by following us on Instagram, @superheroau!