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NVIDIA's Q1 revenue surged by 262%, new product Blackwell is about to be delivered.
Insights from Nvidia's Earnings Report: Growth Continues, Unfazed by Divergence
NVIDIA's latest financial report performed excellently, highlighting the strong growth in demand for computing power:
Quarterly revenue of $26 billion, a year-on-year increase of 262%, far exceeding expectations. Data center revenue of $22.6 billion, a year-on-year increase of 427%.
Net profit of 14.88 billion USD, a year-on-year increase of 628%. The revenue guidance for the next quarter is 28 billion USD, continuing to maintain high growth.
Gross margin of 78.4%, an increase of 2.4 percentage points from the previous period. The company also announced a 1-for-10 stock split plan.
The new generation of Blackwell products is expected to be delivered in the next quarter and gradually ramp up in the third quarter. The demand for H100 chips has not shown signs of slowing down, and H200 is being deployed in supercomputing centers, with high demand expected to continue until 2025.
Network demand remains strong, with revenue of $3.2 billion, a year-on-year increase of 242%. It is expected that with the deployment of H200 and the delivery of Blackwell, the demand for 800G and 1.6T networks will continue to be strong.
Generational changes will not affect current demand. Customer procurement is planned in advance, and products from different generations cannot be mixed in networking. It is expected that the H200 and B series products will continue to increase in volume.
The valuation of computing power is gradually switching towards 2025. NVIDIA's financial report exceeded expectations, and the market's recognition of computing power is expected to increase. With the upgrade of the B series products, the market is beginning to look forward to the second half of the year and even 2025, with valuations likely to gradually switch.
It is recommended to pay attention to core computing power targets such as Zhongji Xuchuang, Xinyi Sheng, Tianfu Communication, Industrial Fulian, Hu Dian Co., Ltd., and other computing power varieties.