Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

ADVANCED MICRO DEVICES, INC.

(AMD)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Nvidia sales surge as it struggles to keep gaming chips in stock

02/24/2021 | 07:18pm EDT
FILE PHOTO: The logo of Nvidia Corporation is seen during the annual Computex computer exhibition in Taipei

(Reuters) - Nvidia Corp forecast better-than-expected fiscal first-quarter revenue on Wednesday, with its flagship gaming chips expected to remain in tight supply for the next several months.

As people wait for COVID-19 vaccine rollouts around the world, stay-at-home orders have kept demand high for chips that speed up video games. But the Santa Clara, California-based company's gaming chips have also regained popularity for mining cryptocurrency, a trend Nvidia is trying to counter by offering special mining chips in order to free up graphics chip supplies for gamers during a global chip shortage.

While Nvidia was long known for its gaming graphic chips, its aggressive push into artificial intelligence chips that handle tasks such as speech and image recognition in data centers has helped it become the most valuable semiconductor maker by market capitalization.

It has eclipsed rivals Intel Corp and Advanced Micro Devices.

Nvidia shares were up 3% at $597.50 in extended trading after the results.

On a conference call with investors, Chief Financial Officer Colette Kress said that a global chip crunch made it hard to keep the company's flagship gaming chips introduced last fall in stock and that the chips would likely remain in tight supply through the fiscal first quarter.

Kress said analysts have estimated that cryptocurrency mining contributed between $100 million and $300 million to Nvidia's sales in the fiscal fourth quarter. The company expects the new mining chips to generate about $50 million revenue in its fiscal first quarter, Kress added.

To discourage miners from using gaming chips, Nvidia will start shipping software with its gaming chips that slows down their ability to mine some currencies and then separately release a mining-specific chip. Nvidia Chief Executive Officer Jensen Huang told Reuters that the mining chips do not need gaming features such as display outputs, which means that chips that might not be suitable for gaming can be used for mining instead.

"The way the use the chips, they don't need a whole bunch of functionality," Huang said of miners.

The company expects first-quarter revenue of $5.30 billion, plus or minus 2%, above analysts' average estimate of $4.51 billion.

Revenue in the quarter ended on Jan. 31 rose to $5 billion from $3.11 billion a year earlier. Analysts on average were expecting $4.82 billion, according to IBES data from Refinitiv.

Revenue in the company's gaming segment was $2.5 billion, above analyst estimates of $2.36 billion, according to data from FactSet. Data center revenue was $1.9 billion, above estimates of $1.84 billion according to FactSet data.

(Reporting by Chavi Mehta in Bengaluru and Stephen Nellis in San Francisco; Editing by Will Dunham and Stephen Coates)

By Chavi Mehta and Stephen Nellis


© Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
ADVANCED MICRO DEVICES, INC. -1.27% 81.11 Delayed Quote.-11.56%
INTEL CORPORATION -1.73% 63.63 Delayed Quote.29.97%
NVIDIA CORPORATION -3.46% 614.47 Delayed Quote.17.67%
All news about ADVANCED MICRO DEVICES, INC.
04/16SOCIAL BUZZ : Gamestop Shares Edge Higher, Other Wallstreetbets Stocks Flat
MT
04/15AMD to Report Fiscal First Quarter 2021 Financial Results
GL
04/15ADVANCED MICRO DEVICES  : Raymond James Initiates Advanced Micro Devices at Outp..
MT
04/15SOCIAL BUZZ : Gamestop Shares Edge Lower, Other Wallstreetbets Stocks Mostly in ..
MT
04/14SOCIAL BUZZ : Coinbase Last Up 35% in Trading Debut, GameStop Jumps 15% as Most ..
MT
04/14SOCIAL BUZZ : Gamestop Shares Climb, Other Wallstreetbets Unchanged
MT
04/13SOCIAL BUZZ : Gamestop Edges Lower, Other Wallstreetbets Tread Water
MT
04/12Tech Down As Inflation Concerns Offset Deal Activity -- Tech Roundup
DJ
04/12INTEL  : Nvidia to directly challenge Intel with Arm-based 'Grace' server chip
RE
04/12INTEL  : Nvidia to directly challenge Intel with Arm-based 'Grace' server chip
RE
More news
Financials (USD)
Sales 2021 13 496 M - -
Net income 2021 2 103 M - -
Net cash 2021 4 188 M - -
P/E ratio 2021 48,4x
Yield 2021 0,25%
Capitalization 98 517 M 98 517 M -
EV / Sales 2021 6,99x
EV / Sales 2022 5,87x
Nbr of Employees 12 600
Free-Float 98,2%
Chart ADVANCED MICRO DEVICES, INC.
Duration : Period :
Advanced Micro Devices, Inc. Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends ADVANCED MICRO DEVICES, INC.
Short TermMid-TermLong Term
TrendsBullishBearishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 40
Average target price 99,34 $
Last Close Price 81,11 $
Spread / Highest target 66,4%
Spread / Average Target 22,5%
Spread / Lowest Target -79,0%
EPS Revisions
Managers and Directors
NameTitle
Lisa T. Su President, CEO & Non-Independent Director
Devinder Kumar Chief Financial Officer, Treasurer & Executive VP
John Edward Caldwell Chairman
Mark D. Papermaster CTO, Executive VP-Technology & Engineering
Keivan Keshvari Senior Vice President-Global Operations
Sector and Competitors
1st jan.Capitalization (M$)
ADVANCED MICRO DEVICES, INC.-11.56%99 780
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED13.77%557 938
NVIDIA CORPORATION17.67%394 630
INTEL CORPORATION29.97%263 684
BROADCOM INC.9.35%195 491
TEXAS INSTRUMENTS16.94%177 153