Nvidia forecasts second-quarter revenue above estimates
FILE PHOTO: The nVIDIA booth is shown at the E3 2017 Electronic Entertainment Expo in Los Angeles, California, U.S. June 13, 2017. REUTERS/ Mike Blake
(Reuters) - Nvidia Corp (NVDA.O) on Thursday forecast second-quarter revenue above analysts’ estimates, as demand surges for its chips used in data centers that power the shift to working remotely due to the coronavirus outbreak.
The company said the forecast includes contribution from its $6.9 billion purchase of Israeli chip firm Mellanox Technologies Ltd, which strengthened its data center business.
The chipmaker said it expects current-quarter revenue of $3.65 billion, plus or minus 2%, while analysts on average were expecting $3.29 billion, according to IBES data from Refinitiv.
Much like rivals Intel Corp (INTC.O) and Advanced Micro Devices Inc (AMD.O), Nvidia recorded a jump in demand for data center chips as companies invested to strengthen their IT infrastructure to support employees working remotely.
Revenue rose 39% to $3.08 billion in the first quarter ended April 26, with the data center business recording its first $1 billion quarter, the company said.
Nvidia’s net income rose to $917 million, or $1.47 per share, from $394 million, or 64 cents per share, a year earlier.
Reporting by Ayanti Bera in Bengaluru and Stephen Nellis in San Francisco
