NVIDIA (NASDAQ: NVDA) has released its second quarter fiscal year 2025 earnings report, showcasing exceptional financial results that have once again exceeded expectations. This analysis delves into the key highlights of the report, comparing NVIDIA’s performance against previous quarters and years, and examining its position within the NASDAQ market.
Q2 FY25 Financial Highlights: Surpassing Expectations
NVIDIA announced a record quarterly revenue of $30.0 billion, a remarkable 15% increase from the first quarter of fiscal 2025 and a staggering 122% surge compared to the same quarter last year. This unprecedented growth underscores NVIDIA’s dominance in key technology sectors and its ability to capitalize on market demands.
The company’s Data Center revenue also reached a record high of $26.3 billion, marking a 16% increase quarter-over-quarter and an impressive 154% year-over-year growth. This segment continues to be a primary driver for NVIDIA, fueled by the increasing demand for accelerated computing and generative AI solutions.
Alt: NVIDIA Q2 FY25 Revenue Growth Chart: Showing a significant increase in revenue compared to Q1 FY25 and Q2 FY24, highlighting strong year-over-year and quarter-over-quarter growth.
On the earnings front, NVIDIA reported GAAP earnings per diluted share of $0.67, a 12% increase from the previous quarter and a substantial 168% jump from the prior year. Non-GAAP earnings per diluted share were $0.68, up 11% from the last quarter and 152% higher than the same period last year. These figures demonstrate NVIDIA’s robust profitability and efficient operational execution.
CEO Jensen Huang’s Perspective: Fueling the AI Revolution
Jensen Huang, founder and CEO of NVIDIA, emphasized the strong demand for NVIDIA’s Hopper architecture and the immense anticipation for the upcoming Blackwell platform. He stated, “Hopper demand remains strong, and the anticipation for Blackwell is incredible. NVIDIA achieved record revenues as global data centers are in full throttle to modernize the entire computing stack with accelerated computing and generative AI.”
Huang further highlighted NVIDIA’s evolution into a full-stack and data center-scale platform provider. “Blackwell samples are shipping to our partners and customers. Spectrum-X Ethernet for AI and NVIDIA AI Enterprise software are two new product categories achieving significant scale, demonstrating that NVIDIA is a full-stack and data center-scale platform. Across the entire stack and ecosystem, we are helping frontier model makers to consumer internet services, and now enterprises. Generative AI will revolutionize every industry.” His comments underscore NVIDIA’s strategic positioning at the forefront of the generative AI revolution and its comprehensive approach to providing end-to-end solutions.
Alt: Portrait of Jensen Huang, CEO of NVIDIA, smiling confidently, representing his leadership and vision for the company’s growth in AI and accelerated computing.
Shareholder Value and Stock Split Impact: Analyzing NVDA on NASDAQ
NVIDIA’s commitment to shareholder returns is evident in its significant share repurchase program and consistent dividend payouts. In the first half of fiscal 2025, NVIDIA returned $15.4 billion to shareholders through share repurchases and cash dividends. As of the end of Q2, the company retained $7.5 billion under its existing share repurchase authorization. Furthermore, the Board of Directors approved an additional $50.0 billion share repurchase authorization on August 26, 2024, signaling continued confidence in the company’s financial strength and future prospects.
The company also announced its next quarterly cash dividend of $0.01 per share, payable on October 3, 2024. Notably, on June 7, 2024, NVIDIA completed a ten-for-one forward stock split. All share and per-share amounts in the earnings report have been retroactively adjusted to reflect this stock split, making historical comparisons consistent and clear for investors analyzing NVDA’s stock performance on NASDAQ. This stock split aimed to make NVIDIA’s stock more accessible to a broader range of investors, potentially impacting its trading volume and stock price dynamics on the NASDAQ exchange.
Q2 Fiscal 2025 Performance Metrics: GAAP vs. Non-GAAP
To provide a comprehensive financial picture, NVIDIA presented both GAAP (Generally Accepted Accounting Principles) and non-GAAP metrics in its earnings report. The tables below summarize the key financial figures for Q2 FY25, Q1 FY25, and Q2 FY24, allowing for a clear comparison of quarter-over-quarter (Q/Q) and year-over-year (Y/Y) performance.
GAAP Metrics (in millions, except earnings per share)
| Metric | Q2 FY25 | Q1 FY25 | Q2 FY24 | Q/Q | Y/Y |
|---|---|---|---|---|---|
| Revenue | $30,040 | $26,044 | $13,507 | Up 15% | Up 122% |
| Gross margin | 75.1% | 78.4% | 70.1% | Down 3.3 pts | Up 5.0 pts |
| Operating expenses | $3,932 | $3,497 | $2,662 | Up 12% | Up 48% |
| Operating income | $18,642 | $16,909 | $6,800 | Up 10% | Up 174% |
| Net income | $16,599 | $14,881 | $6,188 | Up 12% | Up 168% |
| Diluted earnings per share | $0.67 | $0.60 | $0.25 | Up 12% | Up 168% |
Non-GAAP Metrics (in millions, except earnings per share)
| Metric | Q2 FY25 | Q1 FY25 | Q2 FY24 | Q/Q | Y/Y |
|---|---|---|---|---|---|
| Revenue | $30,040 | $26,044 | $13,507 | Up 15% | Up 122% |
| Gross margin | 75.7% | 78.9% | 71.2% | Down 3.2 pts | Up 4.5 pts |
| Operating expenses | $2,792 | $2,501 | $1,838 | Up 12% | Up 52% |
| Operating income | $19,937 | $18,059 | $7,776 | Up 10% | Up 156% |
| Net income | $16,952 | $15,238 | $6,740 | Up 11% | Up 152% |
| Diluted earnings per share | $0.68 | $0.61 | $0.27 | Up 11% | Up 152% |
The non-GAAP metrics exclude certain items, such as stock-based compensation expense and acquisition-related costs, to provide a clearer view of NVIDIA’s underlying operational performance. While both GAAP and non-GAAP figures demonstrate strong growth, the slight differences highlight the impact of these excluded items on the company’s reported financials. Investors often analyze both sets of metrics to gain a holistic understanding of a company’s financial health and profitability, especially when evaluating NVDA’s stock on NASDAQ.
Q3 Fiscal 2025 Outlook: Continued Growth Anticipated
NVIDIA’s outlook for the third quarter of fiscal 2025 remains optimistic, projecting continued growth and strong financial performance. Key elements of the Q3 outlook include:
- Revenue: Expected to be $32.5 billion, plus or minus 2%. This forecast indicates a further increase in revenue, building on the record-breaking Q2 results.
- Gross Margins: GAAP gross margin is projected at 74.4%, and non-GAAP gross margin at 75.0%, both plus or minus 50 basis points. The full-year gross margin is expected to remain in the mid-70% range, reflecting healthy profitability.
- Operating Expenses: GAAP operating expenses are expected to be approximately $4.3 billion, and non-GAAP operating expenses around $3.0 billion. Full-year operating expenses are anticipated to grow in the mid- to upper-40% range, reflecting investments in research and development and strategic growth initiatives.
- Other Income and Expense: Expected to be an income of approximately $350 million, excluding gains and losses from non-affiliated investments and publicly-held equity securities.
- Tax Rates: GAAP and non-GAAP tax rates are projected at 17%, plus or minus 1%.
This positive outlook suggests that NVIDIA expects to maintain its growth trajectory, driven by continued demand for its products and solutions across various market segments. Such forward-looking statements are crucial for investors when assessing the future potential of NVDA stock on NASDAQ.
Segment Highlights: Data Center, Gaming, Professional Visualization, and Automotive
NVIDIA’s Q2 FY25 performance was strong across multiple segments, each contributing to the overall record results.
Data Center: The Primary Growth Engine
The Data Center segment continued its exceptional performance, driven by the widespread adoption of accelerated computing and generative AI. Revenue for this segment reached a record $26.3 billion, demonstrating the critical role NVIDIA plays in powering modern data centers worldwide. The demand for Hopper architecture and the anticipation for Blackwell highlight NVIDIA’s leadership in this space.
Gaming and AI PC: Resilience and Innovation
While specific revenue figures for Gaming and AI PC were not separately highlighted in this summary, the original report mentions activities in this area, suggesting continued contributions to NVIDIA’s overall performance. NVIDIA’s advancements in GPUs for gaming and the emerging AI PC market remain important aspects of its business portfolio.
Professional Visualization: Growth in Digital Twins and Robotics
Professional Visualization revenue reached $454 million in Q2, up 6% from the previous quarter and 20% year-over-year. NVIDIA introduced generative AI models and NIM microservices for OpenUSD to accelerate workflows in industrial digital twins and robotics development. The company also announced collaborations with major Taiwanese electronics manufacturers to create more autonomous factories using NVIDIA Metropolis vision AI, NVIDIA Omniverse™, and NVIDIA Isaac™ AI robot development platforms. These initiatives highlight NVIDIA’s expanding influence in industrial applications and digital transformation.
Alt: Image of robotic arms working in a factory setting, symbolizing NVIDIA’s technology enabling autonomous factories and industrial digitalization through AI and Omniverse.
Automotive and Robotics: Building the Future of Autonomous Systems
While specific financial details for Automotive and Robotics are not provided in this summary, the original report includes this segment, indicating its ongoing importance to NVIDIA’s long-term strategy. NVIDIA’s DRIVE platform for autonomous vehicles and Isaac platform for robotics continue to be key areas of development and future growth.
CFO Commentary and Investor Resources
Colette Kress, NVIDIA’s Executive Vice President and Chief Financial Officer, provided further commentary on the quarter’s performance, accessible on NVIDIA’s investor relations website. This resource is valuable for investors seeking deeper insights into the financial results and management’s perspective.
NVIDIA also hosted a conference call with analysts and investors to discuss the Q2 FY25 results and future prospects. A replay of the webcast is available on NVIDIA’s investor relations website, offering another avenue for stakeholders to access detailed information and management discussions. These investor resources are essential for those tracking NVDA’s performance and making informed decisions regarding NVIDIA stock on NASDAQ.
Non-GAAP Measures and GAAP Reconciliation: Transparency in Reporting
NVIDIA utilizes non-GAAP financial measures to supplement its GAAP-prepared financial statements. These non-GAAP measures, including non-GAAP gross profit, operating expenses, net income, and earnings per share, exclude specific items like stock-based compensation and acquisition-related costs. The company provides detailed reconciliations of GAAP to non-GAAP measures, ensuring transparency and enabling investors to understand the adjustments made in non-GAAP reporting. This commitment to clear and comprehensive financial reporting enhances investor confidence and facilitates a more accurate comparison of NVIDIA’s financial performance over time and against industry peers listed on NASDAQ and other exchanges.
Conclusion: NVIDIA’s Dominance and NASDAQ Performance
NVIDIA’s Q2 FY25 earnings report unequivocally demonstrates the company’s exceptional financial performance and its leadership position in key technology markets. The record-breaking revenue and earnings, driven by the booming Data Center segment and strong demand for AI solutions, highlight NVIDIA’s pivotal role in the ongoing AI revolution. The positive Q3 outlook further reinforces expectations of continued growth and financial strength.
For investors tracking NASDAQ (NVDA), these results are highly encouraging. NVIDIA’s robust financial performance, strategic investments in future technologies, and commitment to shareholder returns position it as a compelling investment opportunity. While market conditions and competitive landscapes are always evolving, NVIDIA’s Q2 FY25 results provide a strong foundation for continued success and sustained performance on the NASDAQ exchange. The comparison against previous periods and future projections paints a picture of a company not just participating in, but actively driving the future of computing and artificial intelligence.
