On Wednesday, Nvidia Corp., the Santa Clara, California-headquartered American multinational semiconductor industry tycoon had beaten Wall Street expectations for first-quarter profits and revenues, while the chipmaker, widely hailed for its graphic chips for video gaming rigs, had forecasted fiscal Q2, 2021 revenues above an analysts’ estimate, though Nvidia shares fell as much as 1 per cent to $621.95 on post-market trading as the Californian tech titan could not clarify the extent of its revenue gains, which had been driven by an extremely volatile cryptocurrency trading in the latest quarter.
Nonetheless, although a sustenance in demand-surge for Nvidia graphic chips continued to steer its quarterly revenues and profits higher on fiscal Q1, 2021 that ended on April 31, investors seemed to be reluctant to cash in on Nvidia shares given its upscaled use in cryptocurrency mining.
Aside from that, latest Nvidia moves to push crypto miners away from its gaming chips towards more mining-friendly chips amid a highly volatile crypto market in the latest quarter, seemingly had diminished investors’ appetite for Nvidia shares despite an upbeat quarterly earnings’ report, while a series of setbacks on its planned acquisition of UK-based Arm Ltd in a $40 billion deal, added to further strains.
Nvidia beats quarterly estimate, forecast Q2 profit above forecast
According to Nvidia Corp’s quarterly earnings’ report for fiscal Q1, 2021, the company has been expecting to shelve a current-quarter revenue of $6.30 billion, beating an analysts’ estimate of $5.5 billion, while the chipmaker had reported $5.66 billion in revenues over its fiscal first quarter of the year, beating Wall Street estimates of $5.41 billion, 0data from Refinitiv had unveiled.
Meanwhile, as Nvidia had reported a $2.76 billion in sales of its gaming chips, more than 100 per cent up compared to the same time a year earlier, Nvidia Chief Financial Officer (CFO) Colette Kress said in a statement, “We believe gaming also benefited from cryptocurrency mining demand, although it is hard to determine to what extent”.