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Nvidia (NVDA) announced its first microprocessor for the server market today, April 12. Right now Intel (INTC) owns around 90% of the market for server processors, where its chip works in tandem with a graphics chip from Nvidia to handle highly complex computing jobs at high speeds for customers such as the cloud units of Amazon (AMZN) and Alphabet (GOOG). The new Nvidia microprocessor would run with graphics chips from Nvidia–eliminating a need for microprocessors from Intel or Advanced Micro Devices (AMD). Systems running the new chip would run, Nvidia says, 10 times after than the current Nvidia/Intel combination. The new Nvidia chip will be available at the beginning of 2023. (Shares of Intel fell 4.18% today.) The Nvidia microprocessor is based on technology from Arm Holdings. Nvidia is attempting to buy Arm from current owner Softbank but the deal has ground to a halt over China’s reluctance to give approval to the acquisition.

You might imagine that the announcement of a chip that won’t be available until 2023 wasn’t the sold cause of a 5.6% jump in Nvidia shares today. The company also reported that first-quarter revenue “is tracking” above its previous forecast. Revenue in the quarter ending in April is now expected to be higher than $5.3 the billion, which Nvidia projected on February 24. “We are experiencing broad-based strength, with all our market platforms driving upside to our initial outlook,” said Nvidia Chief Financial Officer Colette Kress. “Overall demand remains very strong and continues to exceed supply while our channel inventories remain quite lean. We expect demand to continue to exceed supply for much of this year.”

Nvidia is expected to report earnings for the April quarter on May 20. The Wall Street consensus is looking for earnings of $2.55 a share in the quarter. That would be up from $1.48 in the April quarter of 2020.

Nvidia is a member of my long-term 50 Stocks Portfolio. The shares are up 12.36% from my October 21, 2020 pick was of the close on April 12.