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April 12, 2021, 4:12 p.m. EDT

Nvidia stock rallies after revenue outlook raised

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By Wallace Witkowski

Nvidia Corp.’s stock rallied Monday but closed short of a record high after the chip maker’s annual conference kicked off with a rosy revenue outlook and product announcements.

Nvidia’s /zigman2/quotes/200467500/composite NVDA +4.23% stock surged to an intraday high of $614.10, but ended up closing 5.6% higher on the session at $608.36, short of its all-time closing high of $613.21 set on Feb. 16.

Nvidia shares gained after Chief Executive Jensen Huang announced at its annual GTC developers 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, upping its competition against rivals Intel Corp. /zigman2/quotes/203649727/composite INTC +2.48% and Advanced Micro Devices Inc. /zigman2/quotes/208144392/composite AMD +2.05%

Don’t miss: Nvidia steps up competition with Intel and AMD with first data-center CPU, based on Arm

Gains accelerated later in the day, after the company revealed that fiscal first quarter revenue is tracking above its $5.3 billion forecast. In late February , Nvidia had forecast revenue between $5.19 billion and $5.41 billion. Analysts surveyed by FactSet expect $5.32 billion. Nvidia Chief Financial Officer Colette Kress said that revenue was “tracking above the $5.30 billion outlook provided during our fiscal year-end earnings call,” but did not provide a specific new target.

“Within Data Center we have good visibility, 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 increased 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 chip s, up from a previously expected $50 million.

Most of the chip sector was trading lower Monday, as the PHLX Semiconductor Index /zigman2/quotes/210598361/realtime SOX +3.02% down 1.1% as the S&P 500 index /zigman2/quotes/210599714/realtime SPX +1.49% declined less than 0.1%. Over the past 12 months, Nvidia stock is up 131%, while the SOX index is up 103% and the S&P 500 is up 48%.

/zigman2/quotes/200467500/composite
US : U.S.: Nasdaq
$ 569.72
+23.11 +4.23%
Volume: 6.47M
May 14, 2021 4:00p
P/E Ratio
82.60
Dividend Yield
0.11%
Market Cap
$354.58 billion
Rev. per Employee
$878,788
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/zigman2/quotes/203649727/composite
US : U.S.: Nasdaq
$ 55.35
+1.34 +2.48%
Volume: 28.16M
May 14, 2021 4:00p
P/E Ratio
12.44
Dividend Yield
2.51%
Market Cap
$223.50 billion
Rev. per Employee
$704,042
loading...
/zigman2/quotes/208144392/composite
US : U.S.: Nasdaq
$ 74.59
+1.50 +2.05%
Volume: 38.36M
May 14, 2021 4:00p
P/E Ratio
31.71
Dividend Yield
N/A
Market Cap
$90.63 billion
Rev. per Employee
$774,841
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/zigman2/quotes/210598361/realtime
US : Nasdaq
2,981.42
+87.48 +3.02%
Volume: 166,303
May 14, 2021 5:16p
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/zigman2/quotes/210599714/realtime
US : S&P US
4,173.85
+61.35 +1.49%
Volume: 1.91B
May 14, 2021 5:02p
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