Graphics processing unit (GPU) manufacturing and semiconductor microchips company, Nvidia, reported positive first-quarter results. The technology company’s better-than-expected quarterly revenue prompted a Monday rally for its shares, which rose more than 6 percent. Nvidia expects that revenue from its first fiscal quarter of the year to be more than its previous expectations of $5.3 million. Refinitive analysts had previously forecast $5.32 billion in sales revenue for the quarter. In the last fiscal fourth quarter, Nvidia’s revenue was 61 percent higher.
In recent months, semiconductor microchip demand has been robust in the global market. But, Nvidia admitted to product shortages that could make it challenging to find the chips throughout the year. The Santa Clara, California-based company, said that it would continue to ship chips as it can.
Nvidia’s Chief Financial Officer, Colette Kress, said: “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. Overall demand remains very strong and continues to exceed supply while our channel inventories remain quite lean. We expect demand to continue to exceed supply for much of this year.”
Nvidia also announced a fresh new product called Grace, a server chip that runs AI on servers. It also provides chatbot and speech recognition software as well as automated driving products.
In addition to its primary revenue, Nvidia said that its industrial cryptocurrency chips would bring in up to $150 million of revenue for the first fiscal quarter. Analysts had expected around $50 million.
Nvidia was founded in 1993 by Curtis Priem, Chris Malachowsky, and Jensen Huang. Huang is a Taiwanese-American who previously was director for LSI Logic. He also worked as a microprocessor designer for AMD. Both Priem and Malachowsky worked previously for Sun Microsystems, with Priem serving as a graphics chip designer and engineer, while Malachowsky was an electrical engineer.
The company’s last net income was placed at $4.3 billion. Stock prices as of the close of trading on Monday stood at $608.36 per share.