Nvidia quarterly sales to exceed $5.3 billion forecast, stock rallies

In context: The ongoing chip shortage hasn’t stopped Nvidia’s growth. Most of their consumer GPUs may be out of stock or sold at record prices, but the company value has continued to increase as sales revenue beats expectations. With first quarter’s total revenue exceeding its $5.3 billion forecast, Nvidia seems to be selling more chips than expected on all of fronts.

Nvidia’s product portfolio has grown immensely since the times we have known it as a gaming company. It may have started with providing graphics cards for gamers to play their favorite games, but it’s since expanded into a “full-stack computing company,” just ask CEO Jensen Huang.

During its annual Investor Day, Nvidia commented about its strong performance throughout the first quarter of the fiscal year of 2022. It also stated that they are selling more than expected in all market segments it operates in, particularly with cryptocurrency mining returning to the fold.

Nvidia expected about $50 million in sales from its CMP crypto mining processors during Q1, but it has updated its forecast to $150 million. A part of this may come from the reported $30 million orders of CMP cards.

Colette Kress, executive VP and CFO of Nvidia, 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. We are experiencing broad-based strength, with all our market platforms driving upside to our initial outlook.” She added that datacenter and EGX platforms had strong years and expect continued growth of both in the foreseeable future.

The need for data center, HPC, and AI-oriented hardware solutions keeps growing steadily, but similar to other segments, their pricing has also been affected by the chip shortages. As customers pay more for Nvidia chips, the company’s revenue increases proportionally to the price.

Colette also commented on the current GPU shortage. She expects demand will continue to exceed supply for the majority of 2021, but believes Nvidia will have enough GPUs to continue to grow beyond the first quarter. If you’re still looking for a new graphics card for your system but do not want to pay scalper price for it, you’ll have to bear it a while longer.