On May 10, 2018 in Santa Clara, California, a sign stands in front of NVIDIA headquarters.
Justin Sullivan / Getty Images
Nvidia shares were up more than 6% on Monday after announcing several new products and telling investors it expected first quarter earnings to be higher than previously expected.
Nvidia said revenue in its fiscal first quarter, ending in May, is likely to exceed $ 5.3 billion, which was the earlier estimate for investors as of February.
Analysts polled by Refinitiv previously estimated that Nvidia would report $ 5.32 billion in revenue in the quarter.
“While our first quarter for fiscal year 2022 is not yet completed, total sales in the first quarter are above the $ 5.30 billion expected during our year-end financial call,” said Colette Kress, Nvidia’s CFO, in a statement .
The signal of a strong quarter comes as demand for microchips, like the products Nvidia sells, has been high around the world, leading to a shortage of supply and high aftermarket prices for desirable chips, such as Nvidia’s most recent line of graphics cards. Nvidia’s total sales in its 2020 calendar were up 61%.
Nvidia said its chips could be hard to find until the end of the year, but it would still ship enough chips to continue to report growing revenues.
“Overall demand remains very strong and continues to outpace supply, while our channel inventories remain quite lean,” said Kress. “We expect demand to continue to outpace supply for most 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 a whopping $ 150 million in revenue in the first fiscal quarter, up from a previous estimate of $ 50 million.