Semiconductor giant Nvidia (NASDAQ: NVDA) came out with stellar results for the first quarter of fiscal 2025 (ending April 28, 2024), with revenue and earnings easily beating the Wall Street consensus estimates. The company's booming artificial intelligence (AI)-powered data center segment has been the main reason for this exceptional performance. Data center revenue was up by 427% year over year to $22.6 billion in the first quarter.

With the rapid advancement and adoption of generative AI technologies, cloud service providers, enterprises, start-ups, and even sovereign governments are using Nvidia's GPUs (Hopper architecture-based H100 chips) extensively for training and inferencing large language models. The existing trillion-dollar global data center infrastructure, based on "dumb" network interface cards (NICs) and central processing units (CPUs), is being transitioned to accelerated computing. Enterprises are also gearing up to transition their H100 GPU-based accelerated computing infrastructure to that based on the superior H200 chip and the next-generation Blackwell systems. All these tailwinds bode extremely well for Nvidia's financial and share price performance in the coming months.

On May 22, Nvidia announced a 10-for-1 stock split, effective June 10, 2024. Although the split does not change a company's fundamental story or growth prospects, it makes the stock more accessible to a broader base of retail investors.

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Source Fool.com