A sign will be posted outside NVIDIA headquarters in Santa Clara, California on May 10, 2018.
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Nvidia shares closed 5.62% on Monday after the company announced several new products and told investors that its first quarter earnings would beat previous estimates.
Nvidia said revenue is likely to be higher than $ 5.3 billion in its first fiscal quarter ending in May, which was its previous estimate for investors as of February.
Analysts polled by Refinitiv had previously expected Nvidia to generate revenue of $ 5.32 billion in the quarter.
“While our first quarter of fiscal 2022 is still ongoing, our total revenue for the first quarter is above our $ 5.30 billion guidance given during our fiscal year-end earnings call,” said Colette Kress, CFO of Nvidia, in an explanation.
The signal for a strong quarter is that global demand for microchips like the products Nvidia sells has been high, resulting in tight supply and high aftermarket prices for desirable chips like Nvidia’s latest line of graphics cards. Total Nvidia revenue increased 61% in the fourth quarter of fiscal year.
Nvidia said its chips could be hard to find by the end of the year, but that it would still supply enough chips to keep its revenue growing.
“Overall demand remains very strong and continues to outperform supply, while our canal inventories remain quite meager,” said Kress. “We assume that demand will continue to outstrip supply for much of this year.”
On Monday, Nvidia announced a new server chip called Grace, new systems to run artificial intelligence on servers, software to run chatbots and voice recognition, and new products for self-driving cars.
Nvidia also said its line of chips for industrial cryptocurrency miners would see revenue of up to $ 150 million in fiscal first quarter, compared to an earlier estimate of $ 50 million.
Correction: Nvidia’s total revenue increased 61% in the fourth quarter of fiscal year. In an earlier version, the time period was specified incorrectly.