Nvidia Gives In-Line Forecast Helped by Data Center Demand
- Quarterly data center sales topped $1 billion for first time
- Game-related revenue fell sequentially as pandemic hurt supply
Nvidia Corp. gave a quarterly revenue forecast in line with analysts’ estimates, helped by a surge in spending on internet infrastructure and purchases of computer gaming gear.
Revenue will be about $3.65 billion in the fiscal second quarter, the Santa Clara, California-based company said Thursday in a statement. That compares with an average analyst estimate of $3.28 billion. The company’s prediction includes a “low-teens percentage” contribution to revenue from its acquisition of Mellanox Technologies, which some analysts hadn’t included in their forecasts.
Nvidia is the biggest maker of semiconductors that improve video-game play on computers. The company has parlayed that strength into a growing position in data centers, where its chips are well-suited to artificial intelligence work. Owners of data centers are buying more chips and other components to handle an increase in online activity spurred by a large chunk of the world’s population sheltering in place during the Covid-19 pandemic.