Nvidia Gives Key Investor Day Updates; 1Q Revenue Tracking Above $5.3B 1Q Outlook


Nvidia made some key announcements at its Investor Day on April 12. The graphics card company said that its 1Q FY22 revenue was tracking above its earlier announced outlook with “outperformance in each of its market platforms”.

Nvidia’s (NVDA) executive vice president and chief financial officer Colette Kress said, “While our fiscal 2022 first quarter is not yet complete, Q1 total revenue is tracking above the $5.30 billion outlook provided during our fiscal year-end earnings call. We are experiencing broad-based strength, with all our market platforms driving upside to our initial outlook.”

NVDA raised 1Q revenue estimates for its new cryptocurrency mining processor (CMP) product used in cryptocurrency mining from $50 million to $150 million.

The company also announced the launch of eight new NVIDIA Ampere architecture GPUs that can be used in laptops, desktops and servers and make it possible for professionals to handle demanding workloads.

Additionally, NVDA said that Volvo Cars (VLVLY) , Zoox and SAIC are using Nvidia Drive – the company’s software-based end-to-end platform for autonomous vehicles. According to NVDA, its automotive pipeline is now in excess of $8 billion for the next six years.

The company unveiled NVIDIA DRIVE Atlan – a data center that consists of autonomous vehicle’s entire computing infrastructure “into a single system-on-a-chip”.

Following the Investor Day presentation, Needham analyst Rajvindra Gill reiterated a Buy and a price target of $800 on the stock. Gill said in a note to investors, “Gaming has continued to show strength, although the CFO additionally remarked that all segments will be contributing more significantly to Q/Q growth, which is likely what led to the company raising its Q1 revenue outlook to be higher than previous guidance. This is also in part due to supply availability being better than expected, and the company expects this will continue to improve throughout the year.”

The rest of the Street is bullish on the stock with a Strong Buy consensus rating based on 23 analysts suggesting a Buy and 4 analysts recommending a Hold. The average analyst price target of $656.80 implies approximately 8% upside potential to current levels.

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