The share of Nvidia Corp. rose Monday, but closed shortly from a record high after the chip maker’s annual conference kicked off with a rosy revenue outlook and product announcements.
NVDA from Nvidia,
stock rose to an intraday high of $ 614.10, but eventually ended up 5.6% higher on the session at $ 608.36, short of its all-time high of $ 613.21 on Feb. 16.
Nvidia shares won after Chief Executive Jensen Huang announced at his annual GTC developer conference Monday morning that the chip maker was launching its first data center central processing unit, or CPU – as opposed to its core graphics processing unit, or GPU, product-based on Arm Holdings PLC technology, making the competition with rivals Intel Corp. INTC is increased,
and Advanced Micro Devices Inc. AMD,
Don’t Miss: Nvidia Raises Competition With Intel and AMD With First Data Center CPU, Based on Arm
Earnings accelerated later in the day after the company revealed that first-quarter revenues are above its $ 5.3 billion forecast. At the end of February, Nvidia had forecast sales of between $ 5.19 billion and $ 5.41 billion. Analysts polled by FactSet expect $ 5.32 billion. Colette Kress, Nvidia’s Chief Financial Officer, said the revenues “exceeded the $ 5.30 billion outlook provided during our year-end financial call,” but did not specify a new target.
“We have good visibility within Data Center, and we expect another strong year. Industries are increasingly using AI to improve their products and services, ”Kress said in a statement. “We expect this will lead to more consumption of our platform through cloud service providers, resulting in more purchases as we go through the year.
Nvidia also said it expects first quarter revenue of $ 150 million for its cryptocurrency mining chips, up from a previously projected $ 50 million.
Most of the chip sector traded lower on Monday as the PHLX Semiconductor Index SOX,
1.1% lower than the S&P 500 index SPX,
decreased by less than 0.1%. Over the past 12 months, the Nvidia stock is up 131%, while the SOX index is up 103% and the S&P 500 is up 48%.