Home https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Business https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Nvidia stock is rising as it looks better than expected in the first quarter

Nvidia stock is rising as it looks better than expected in the first quarter

A sign will be erected in front of NVIDIA’s headquarters on May 10, 2018 in Santa Clara, California.

Justin Sullivan / Getty Images

Nvidia shares rose more than 6% on Monday after announcing several new products and telling investors that they expected earnings in the first quarter to be higher than previously expected.

Nvidia said revenue in the first fiscal quarter ending in May is likely to be higher than $ 5.3 billion, which was the 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 first quarter of 2022 is not yet complete, Q1

’s total revenue exceeds expectations of $ 5.30 billion, given during our revenue call for the fiscal year,” Colette Kress, CFO of Nvidia, said in a statement.

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

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

“Overall demand remains very strong and continues to exceed supply, while our channel inventories remain rather lean,” said Kress. “We expect demand to continue to exceed supply 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 its line of chips for industrial cryptocurrency miners would report as much as $ 150 million in revenue in the first fiscal quarter, up from an earlier estimate of $ 50 million.

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