disruptpress efi
Earnings

Nvidia stock rises as it sees better-than-expected first quarter

A sign is posted in front of the NVIDIA headquarters on May 10, 2018 in Santa Clara, California.
Justin Sullivan/Getty Images

Nvidia stock rose over 6% on Monday after announcing several new products and telling investors that it expected its first-quarter income to be higher than previously expected.

Nvidia said revenue in its fiscal first quarter, which ends in May, is likely to be higher than $5.3 billion, which was its previous estimate for investors from February.

Analysts polled by Refinitiv previously estimated that Nvidia would report $5.32 billion in sales in the quarter.

“While our fiscal 2022 first quarter is not yet complete, Q1 total revenue is tracking above the $5.30 billion outlook provided during our fiscal year-end earnings call,” said Colette Kress, Nvidia CFO, in a statement.

The signal about a strong quarter comes as demand for microchips, like the products that Nvidia sells, has been high around the world, leading to short supply and high aftermarket prices for desirable chips, such as Nvidia’s most recent line of graphics cards. Nvidia’s total revenue in its calendar 2020 was up 61%.

Nvidia said that its chips could to be hard to find through the end of the year, but that it would still ship enough chips to continue to report growing revenue.

“Overall demand remains very strong and continues to exceed supply while our channel inventories remain quite lean,” Kress said. “We expect demand to continue to exceed supply for much of this year.”

On Monday, Nvidia announced a new server chip called Grace, new systems for running artificial intelligence on servers, software for running chatbots and speech recognition, and new products for self-driving cars.

Nvidia also said that its line of chips for industrial cryptocurrency miners would report as much as $150 million in revenue in the first fiscal quarter, up from a previous estimate of $50 million.

Products You May Like

Articles You May Like

To Close The Tax Gap, Don’t Just “Audit The Rich.” Improve IRS Customer Service For All Americans.
Coach owner Tapestry sales in North America return to pre-pandemic levels, retailer swings to profit
CVS Health earnings top estimates as Covid vaccinations, testing boost drugstore sales
Demand is outpacing supply of new vehicles – why that’s bad for shoppers but good for investors
Cramer says he owns ‘a lot’ of red-hot cryptocurrency ether that’s tripled bitcoin’s 2021 gain

Leave a Reply

Your email address will not be published. Required fields are marked *