Nvidia stock rises as it sees better-than-expected first quarter
- Nvidia stock rose over 5% on Monday after telling investors that it expected its first-quarter income to be higher than previously expected
- The signal about a strong quarter comes as demand for semiconductor microchips, like the products that Nvidia sells, has been high around the world.
- Nvidia said that its chips could be hard to find through the end of the year amid product shortages.
Nvidia stock closed up 5.62% on Monday after the company announced several new products and told investors that it expected its first-quarter income to surpass previous estimates.
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 expected 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's 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 fiscal fourth quarter was up 61%.
Nvidia said that its chips could 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, fresh 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 fiscal first quarter, up from a previous estimate of $50 million.
Correction: Nvidia's total revenue in its fiscal fourth quarter was up 61%. An earlier version misstated the time period.