Nvidia shares rose 7% to $1,000.

Nvidia ( NVDA ) reported its first quarterly earnings after the bell on Wednesday, while announcing a 10-for-1 stock split and an increased dividend.

The company reported adjusted earnings per share (EPS) of $6.12 on revenue of $26 billion, up 461% and 262%, respectively, from a year ago.

Analysts had expected adjusted EPS of $5.65 on revenue of $24.69 billion, according to data from Bloomberg. The company reported adjusted EPS of $1.09 on revenue of $7.19 billion in the same quarter last year.

For the current quarter, Nvidia expects revenue of $28 billion plus, or minus 2%. That was better than the $26.6 billion analysts were expecting.

Nvidia shares rose nearly 7% to trade above $1,000 in pre-market trading on Thursday.

“Our data center growth was driven by strong and rapid demand for generative AI training and inference on the Hopper platform,” Nvidia CEO Jensen Huang said in a statement. , Sovereign AI, automotive and healthcare clients are creating multi-billion dollar vertical markets.”

Wall Street analysts have previously raised concerns about the share of Nvidia’s data center revenue coming from hyperscalers like Microsoft ( MSFT ), Google ( GOOG , GOOGL ), Amazon ( AMZN ) and other big tech names. This is especially true as those companies release their own AI accelerator chips.

Still, as non-hyperscalar use of Nvidia chips continues to grow, CFO Colette Kress said in his own commentary Large cloud providers accounted for about 45% of the company’s data center revenue.

Nvidia’s data center revenue rose 427% year-over-year to $22.6 billion, accounting for 86% of the company’s total revenue in the quarter. But Kress pointed out that revenue from China fell significantly in the quarter as the company was forced to stop shipping its most powerful chips to the country. What’s more, he expects the market in the region to be very competitive going forward.

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Nvidia’s gaming division, previously its most important business, saw revenue of $2.6 billion.

The company’s stock split – in which shareholders will receive 10 shares for every share of the company they currently own – will begin on June 7 and its new dividend will be paid on June 11 to shareholders on June 28.

The stock split could prompt speculation that Nvidia could be added to the price-weighted Dow Jones Industrial Average (^DJI), joining big tech peers like Apple (AAPL), Amazon and Microsoft. Nvidia stock traded near $980 a share in after-hours trading on Wednesday, meaning the stock is expected to trade at $98 a share after the split.

Nvidia’s beefed-up dividend follows similar moves announced so far this year by the likes of Meta (Meta) and Alphabet, which both started quarterly dividends for the first time, and Apple, which raised its dividend earlier this month.

NVIDIA's CEO Jensen Huang demonstrates products on stage during the annual Nvidia GTC artificial intelligence conference at the SAP Center in San Jose, California on March 18, 2024.  (Photo by JOSH EDELSON / AFP) (Photo by JOSH EDELSON/AFP via Getty Images)

Jensen Huang, CEO of NVIDIA, demonstrates products on stage during the annual NVIDIA GTC artificial intelligence conference at the SAP Center on March 18, 2024 in San Jose, California. (JOSH EDELSON/AFP via Getty Images) (Josh Edelson via Getty Images)

Email Daniel Hawley at [email protected]. Follow him on Twitter @Daniel Hawley.

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