NVIDIA: Overwhelming success for CMP cards, forecast significantly upside for 2021

NVIDIA: Overwhelming success for CMP cards, forecast significantly upside for 2021


Yesterday, NVIDIA said first quarter revenue will exceed the $ 5.30 billion previously forecast, thanks in part to strong demand for its data center, gaming and cryptocurrency mining GPUs. Unfortunately for consumers, according to company data, demand will continue to outstrip supply for the rest of the year.

Colette Kress, executive vice president and chief financial officer of NVIDIA, said:

While our fiscal first quarter of 2022 is not yet complete, total revenue exceeded the $ 5.30 billion forecast given at our end-2020 earnings meeting. reputation in the data center field and we expect another very strong year from that point of view. Industries are increasingly using AI to improve their products and services, and we expect this to lead to increased use of our wall platform by major cloud service providers, resulting in increased purchases over the next few months.

Sales of NVIDIA's GeForce RTX GPUs are also on the rise due to more people left at home as a result of the pandemic. In addition, modern graphics cards cost much more than they were several years ago, which is why revenues are increasing even in the face of a decrease in sales volumes. NVIDIA's data center solutions today include not only compute cards or modules sold at huge margins, but also complete machines for AI and HPC workloads. Therefore, average selling prices are also increasing on this front.

The company also started selling its cryptocurrency mining CMP cards this quarter, and as this is a pretty big phenomenon, the demand for these products has exceeded expectations by three times. Initially, NVIDIA expected to raise $ 50 million by selling these GPUs in the first quarter of fiscal year 2022, but now it expects to reach as high as $ 150 million. Although sales are higher than expected, the company says they could have been even higher if demand could have been fully met.

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3 Reasons to Buy NVIDIA After Its Investor Presentation

In today's video, I look at my favorite things from NVIDIA's Investor Day presentation. The presentation showed various new projects and products for the company, which drove the stock price up over 5%.

Here are three reasons to watch NVIDIA (NASDAQ:NVDA) after its presentation:

  • NVIDIA announced that its first-quarter FY22 revenue is currently tracking over the outlook that it gave last quarter. Its guidance is bullish because the demand for its products is higher than the supply rate.
  • NVIDIA has now entered the data center CPU market with its new Grace CPU, based on the ARM platform. NVIDIA is now in the CPU, GPU, and DPU market.
  • Autonomous driving was a massive topic during this Investor Day, and NVIDIA presented numerous solutions to help speed up the process for all types of car manufacturers. 
  • Click the video below for my full thoughts. 

    *Stock Prices used were the Mid-Day prices of April 12, 2021. The video was published on April 12, 2021. 


    This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.