It was easily the most important event of the current earnings cycle when Nvidia (NASDAQ:NVDA) recently released its financial results. These results would clarify the AI hardware market for investors. Nvidia and the AI processor industry are thriving. Barring unforeseen events, NVDA stock should see clear skies ahead.
I usually support underdog businesses, but Nvidia is an exception. Short sellers and skeptical investors should consider joining the winner’s circle instead of betting against Nvidia. AI and Nvidia are here to stay, whether you like it or not.
Nvidia Stock Crosses $1,000 on Spectacular Quarterly Results
It was front-page news on May 23 when Nvidia stock crossed above $1,000, and the catalyst wasn’t difficult to identify. The previous day, Nvidia had released its much-anticipated first-quarter fiscal 2025 results.
“Blowout” would be the right way to describe the quarterly results. Believe it or not, Nvidia’s revenue soared 262% year over year to $26 billion. Meanwhile, analysts had only expected $24.6 billion in Q1-FY2025 revenue.
Nvidia reported adjusted earnings of $6.12 per share, up 461% YOY and ahead of Wall Street’s call for earnings of $5.60 per share.
I couldn’t even count the number of times Nvidia CEO Jensen Huang mentioned AI in the company’s quarterly news release. His point is valid, as the AI processor market is thriving. Nvidia’s Data Center revenue increased 427% YoY to $22.6 billion.
Nvidia Shares Will Be More Affordable
Along with all of that, Nvidia stock investors received some news that they might not have expected. First, Nvidia is enacting a 10-for-one forward stock split, effective June 7 of this year.
It’s great to see Nvidia joining the “stock split club.” Not everyone can easily afford to buy a $1,000 stock, and a $100 share price would be more affordable and might entice some reluctant investors.
Nvidia is hiking its quarterly dividend by 150%, from 4 cents per share to 10 cents per share of common stock. Just make sure that you’re a shareholder of record on June 11 in order to qualify for the dividend distribution on June 28.
Nvidia Stock: What More Could You Ask For?
The dividend hike and the stock split should persuade some hesitant investors to take a chance on Nvidia. What’s most important, however, is that Nvidia is in terrific financial shape in 2024.
All of this indicates that the AI-hardware industry is still in growth mode. So, what are you waiting for? Nvidia stock offers everything a technology-market investor could want and more, and now’s a great time to start buying.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.