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.
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.
and Advanced Micro Devices Inc.
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 chips, up from a previously expected $50 million.
Most of the chip sector was trading lower Monday, as the PHLX Semiconductor Index
down 1.1% as the S&P 500 index
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%.