Nvidia (NVDA 0.53%) isn't just leading the artificial intelligence (AI) infrastructure boom: It is the boom. Its graphics processing units (GPUs) have become the backbone of AI data centers, while its CUDA software has helped create a huge moat around its business.Over the past two years, data center revenue has exploded by more than 9x, going from $4.3 billion to $39.1 billion. For a company of Nvidia's size, that kind of growth is almost unheard of. That momentum has pushed Nvidia past the $4 trillion mar ...

Nvidia (NVDA 0.33%) generated more than $44 billion in revenue during its fiscal 2026 first quarter (which ended April 27), with $39.1 billion of that total coming from its data center business alone. The company sells the most powerful graphics processing units (GPUs) in the world for data centers, and they are the chips every artificial intelligence (AI) developer wants to use.Nvidia CEO Jensen Huang thinks AI data center spending will top $1 trillion per year by 2028, but he's eyeing another trillion-dol ...

Financial Data and Key Metrics Changes - The company reported total net sales of nearly $1 billion for the first quarter, with a slight decrease from the previous year due to the divestiture of Pope Products [8][26] - Adjusted diluted earnings per share (EPS) increased to $0.65, up from $0.64 year-over-year, while reported EPS decreased to $0.52 from $0.62 [10][26] - The professional segment net sales were $768.8 million, up 1.6% year-over-year, while the residential segment net sales were $221 million, down from $240 million [28][30] - The company's reported and adjusted gross margins were 33.7% and 34.1%, respectively, compared to 34.4% in the same period last year [33] Business Line Data and Key Metrics Changes - Professional segment earnings for the first quarter were $127.2 million, up 13% from $112.8 million last year, with a profitability increase to 16.5% from 14.9% [29] - Residential segment earnings decreased to $17.2 million from $23.5 million, with a margin drop to 7.8% from 9.8% [31] - The professional segment's growth was driven by higher shipments of golf and grounds products and increased demand for zero-turn mowers [28][30] Market Data and Key Metrics Changes - Demand in the golf market remains strong, with record rounds played and elevated order backlogs [9] - The residential segment faced challenges due to elevated field inventories of snow products and lower shipments of portable power products [30][31] - The company noted that snowfall activity has improved compared to last year, but year-to-date totals remain below historical averages [46] Company Strategy and Development Direction - The company is focused on innovation to address customer needs and align with market growth trends, launching cutting-edge products equipped with the latest technologies [12][13] - The acquisition of ProKASRO Services USA enhances the company's underground construction product portfolio, capitalizing on synergies with existing products [19][22] - The AMP initiative aims to deliver $100 million in annualized run rate savings by fiscal 2027, with a portion reinvested to accelerate innovation [24][42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver positive financial results despite uncertainties in the macro environment, including economic and geopolitical factors [56][57] - The company expects sustained strength in demand for underground construction and golf products, with a normalization of field inventories for lawn care and snow products [43][44] - Guidance for fiscal 2025 includes total company net sales growth in a range of 0% to 1%, with adjusted diluted EPS expected between $4.25 and $4.40 [49][51] Other Important Information - The company repurchased $100 million in shares during the quarter, reflecting confidence in future financial performance [25][41] - The effective tax rate for the first quarter was reported at 20.1%, up from 19% last year, primarily due to lower tax benefits [36] Q&A Session Summary Question: Clarification on AMP savings and impact on earnings - Management confirmed that $7 million in gross realized savings were achieved in Q1, with a total run rate savings of $64 million to date [72][73] Question: Inquiry about Pro snow and dealer inventories - Management noted that snow levels were down significantly compared to historical averages, impacting sales, but contractor budgets are in good shape [81][84] Question: Expectations for price-cost spread for the year - Management indicated that while costs have risen, they expect to return to a normal price increase of 1% to 2% for the full year, excluding tariffs [87][88] Question: Tariff exposure and manufacturing locations - Management stated that the majority of products are made in the U.S., with minimal exposure to China and Mexico, and they are prepared to mitigate tariff impacts [92][95] Question: Field channel inventory status - Management reported that field inventories for the Pro landscape contractor side are improved compared to last year, with expectations for further normalization in the spring [103][106] Question: Underground business performance - Management confirmed strong demand in the underground space, with ongoing product introductions and positive future outlook [109]