Earning Charts | Nvidia Widens Lead Over AMD and Intel

Moomoo News Global joined discussion · May 29 16:52

Earning Charts | Nvidia Widens Lead Over AMD and Intel

$NVIDIA (NVDA.US)$ 's earnings demonstrates that the company is significantly outpacing its competitors, including AMD and Intel, with continued high revenue growth. This quarter's gross margin was 60.5%, although below expectations, it was impacted by an inventory impairment provision of approximately $4.5 billion for the H20 chip. Excluding the impact of this issue, the company's gross margin for the quarter would return to around 71%.

● Key Financial Data:

Revenue: First quarter revenue was $44.1 billion, up 69% year-over-year, surpassing analyst expectations of $43.29 billion and Nvidia's own guidance of between $42.14 billion and $43.86 billion. The previous quarter saw a year-over-year increase of 78%.

EPS: Adjusted non-GAAP EPS for the first quarter was $0.81, up 33% year-over-year. Excluding expenses related to H20 and tariffs, EPS was $0.96, above analyst expectations of $0.93 and a 71% increase from the previous quarter.

Gross Margin: Adjusted gross margin for the first quarter was 60.5%, down 17.9 percentage points year-over-year. Excluding the impact of H20, the gross margin was 71.3%, slightly above the analyst expectation of 71% and within Nvidia's guidance of 70.5% to 71.5%. The previous quarter's gross margin was 73.5%, down 3.2 percentage points year-over-year.

Operating Expenses: Adjusted operating expenses for the first quarter were $3.58 billion, up 43% year-over-year, slightly below analyst expectations of $3.63 billion. Despite the high revenue growth, the overall expense ratio continued to decline.

Inventory/Revenue: The ratio for this quarter is 26%, remaining stable quarter-over-quarter. The company's inventory continued to rise to $11.3 billion this quarter, primarily driven by stockpiling related to Blackwell products. Given that the company's revenue side still maintains a high growth rate of nearly 70%, the proportion of inventory remains relatively low.

Accounts Receivable/Revenue: The ratio for this quarter is 50%, showing a decline again. Influenced by the high growth in company revenues, the proportion of accounts receivable to revenue has fallen again this quarter.

● Segment Data:

Data Centers: First quarter revenue from data centers was $39.1 billion, up 73% year-over-year, slightly below the analyst expectation of $39.22 billion. The previous quarter saw a year-over-year increase of 93%.

Gaming and AI PC: First quarter revenue from gaming and AI PC businesses was $3.8 billion, up 42% year-over-year, well above analyst expectations of $2.85 billion. The previous quarter saw a year-over-year decline of 11%.

Professional Visualization: First quarter revenue from professional visualization was $509 million, up 19% year-over-year, slightly above analyst expectations of $505 million. The previous quarter saw a year-over-year increase of 10%.

Automotive and Robotics: First quarter revenue from automotive and robotics was $567 million, up 72% year-over-year, slightly below analyst expectations of $579.4 million. The previous quarter saw a year-over-year increase of 27%.

● Earnings Guidance:

Revenue: Second quarter revenue is projected to be $45 billion, with a fluctuation of 2%, i.e., between $44.1 billion and $45.9 billion. The median analyst expectation is $45.5 billion.

Gross Margin: Adjusted non-GAAP gross margin for the second quarter is expected to be 72.0%, with a fluctuation of 50 basis points, i.e., between 71.5% and 72.5%. Analyst expectations are at 71.7%.

Operating Expenses: Adjusted operating expenses for the second quarter are expected to be around $4 billion, with an anticipated annual growth of about 35%. Analyst expectations are $3.86 billion.

● Industry comparison:

By comparing the market share changes of Nvidia, $Advanced Micro Devices (AMD.US)$ , and $Intel (INTC.US)$ in the data center market from the first quarter of 2022 to the first quarter of 2025, we can see a continuous upward trend in Nvidia’s market share, which climbed from 33.9% in the first quarter of 2022 to 83.4% in the first quarter of 2025, indicating its increasingly solid position in the data center market. During this period, AMD's market share experienced a slight decline. In contrast, Intel’s market share showed a significant downward trend, dropping from 54.5% in the first quarter of 2022 to 8.8% in the first quarter of 2025.

Data shows that the Capex growth rate of the four major U.S. cloud service providers slightly declined in the first quarter, but still reached a high of 64.4%. The further increase in Nvidia's share implies that its slowdown in growth rate will be better than its competitors.

In addition, Nvidia will utilize NVLink Fusion to expand its customer base in the future.

Nvidia released NVLink Fusion on May 20. NVLink Fusion is designed to build semi-custom AI infrastructure, facilitating connections between Nvidia GPUs and other CPUs, as well as between Nvidia CPUs and other AI accelerators. NVLink is one of Nvidia's advantages as an innovative interconnect technology, and NVLink Fusion aims to expand the NVLink ecosystem through open connection technology.

Companies like MediaTek, $Marvell Technology (MRVL.US)$, $Astera Labs (ALAB.US)$, $Synopsys (SNPS.US)$, and $Cadence Design Systems (CDNS.US)$ are rapidly adopting NVLink Fusion to facilitate the expansion of custom chips, meeting the demands of stringent workloads such as model training and agent-based AI inference.