Nvidia Forecast Beats Expectations For Second Quarter

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Technology company Nvidia Corp’s revenue forecast for the second quarter was better than analysts’ expectations on Wednesday, but shares fell 1% as the company could not say how much of its recent rise in revenue was due to the cryptocurrency market.

Demand for its graphics chips for video games boomed during the pandemic.

As a result, sales of data center chips used in AI applications such as image recognition have increased sharply over several years.

In an effort to separate volatile demand for crypto-mining chips from its more stable businesses, the tech giant has been trying to usher in technical changes to shift miners from its gaming chips to chips specifically designed for mining.

Nvidia said crypto-specific chips generated $155 million in the first quarter and revenue is expected to rise to $400 million in the second quarter.

Nvidia CEO Jensen Huang revealed that gaming chips less suited to miners will remain available to gamers.

The technology giant is expected to complete its $40 billion deal to acquire British chip technology company Arm Ltd. by March 2022, a deal that has come under scrutiny from American, British, Chinese, and European regulators.

The company’s total revenue in the first quarter was $5.66 billion, exceeding estimates of $5.41 billion.

Inflation-adjusted earnings were $3.66 per share, beating analyst estimates of $3.28.

The company’s data center business, which faces stiff competition from Intel Corp’s dominance in the market segment, posted revenue of $2.05 billion, a 79% year-over-year increase.

Gaming chip sales also rose to $2.76 billion, surpassing estimates of $2.47 billion.

For more information, read the original story in Reuters.

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