134.72 -0.81 (-0.60%)
Pre-market: 5:13AM EST
|Bid||0.00 x 900|
|Ask||0.00 x 800|
|Day's range||135.03 - 140.83|
|52-week range||58.00 - 167.94|
|Beta (5Y monthly)||1.36|
|PE ratio (TTM)||23.17|
|Earnings date||28 Apr 2021|
|Forward dividend & yield||2.60 (1.92%)|
|Ex-dividend date||03 Mar 2021|
|1y target est||172.27|
(Bloomberg) -- Nvidia Corp. shares slipped on concern about growth of the company’s data center chip business.During an earnings conference call, Chief Financial Officer Colette Kress said the majority of growth in the current period will come from Nvidia’s gaming business. Some analysts worried that means the data center division will expand more slowly and they asked several questions on the topic during the call.Nvidia reported data center chip sales jumped 97% to $1.9 billion in the fiscal fourth quarter from a year earlier. It also gave a revenue forecast that beat Wall Street expectations. However, the CFO’s comments on the conference call curbed enthusiasm for a stock that has more than doubled in the past year.The stock fell about 2.5% in extended trading, after closing at $579.96 in New York earlier on Wednesday.The company has become a barometer of confidence at some of the biggest tech companies. Cloud providers such as Google and Amazon.com Inc. use Nvidia graphics chips to help power some of the most widely used services on the internet. That business is choppy, with spikes in orders followed by lulls as customers use up stockpiles of chips.Right now, the semiconductor sector is struggling to meet surging demand in some parts of the industry, and Nvidia has been caught up in this.An increase in online activity and purchases of technology gear for working from home triggered a sharp rebound in chip demand last year. That caught some customers off guard, especially automakers. New orders flooded in and the global semiconductor supply chain is still trying to catch up. Nvidia outsources production to Taiwan Semiconductor Manufacturing Co. and Samsung Electronics Co., which are swamped with orders. That’s limiting Nvidia’s ability to meet demand.“Throughout our supply chain, stronger demand globally has limited the availability of capacity and components, particularly in Gaming,” Kress said.QuickTake: Here’s Why the World Is Short of Computer Chips.Nvidia is supply constrained “at the company level,” Chief Executive Officer Jensen Huang said. It has enough supply to grow throughout this year, and some segments like data center won’t be hurt by chip shortages, he added.Revenue will be about $5.3 billion in the period ending in April, the Santa Clara, California-based company said Wednesday in a statement. That compares with an average analyst estimate of $4.5 billion, according to data compiled by Bloomberg.The chipmaker is seeing a surge in orders for PC gaming gear from consumers stuck at home in the pandemic and looking for entertainment. Nvidia’s graphics chips are also important components in machines that run the code needed to create Bitcoins and other cryptocurrencies. The price of Bitcoin has soared in recent months.Huang has built on Nvidia’s strength in PC gaming graphics chips by taking the company into new markets such as artificial intelligence processing in data centers and components for autonomous vehicles.Revenue from gaming was $2.5 billion in the quarter, up 67% from the same period last year.During previous run ups in the price of cryptocurrencies, Nvidia experienced surging demand followed by crashes sparked by price drops and the switch to more customized technology. The company has tried to minimize this volatility by offering different chips specifically for crypto mining. That reduces the risk that Nvidia’s gaming chips are dumped back into the market when crypto customers realized they don’t need them.Last September, Nvidia agreed to buy SoftBank Group Corp.’s chip division Arm Ltd. for $40 billion, in a bid to control of some of the most widely used electronics technology. The two are seeking regulatory approval around the world. Arm customers including Google, Microsoft Corp. and Qualcomm Inc. are worried about the deal and have urged antitrust officials to intervene.Fiscal fourth quarter revenue rose 61% to $5 billion and profit excluding certain costs was $3.10 a share in the period, which ended Jan. 31, the company said. Analysts, on average, predicted earnings of $2.81 a share on sales of $4.82 billion.(Updates with CFO comments in second paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Qualcomm (NASDAQ: QCOM) is prodding regulators across the world to block NVIDIA's (NASDAQ: NVDA) $40 billion acquisition of the U.K. chip designer Arm Holdings, according to reports from Bloomberg and CNBC. Qualcomm's opposition to the deal might seem puzzling at first since the two companies sell different types of chips. Qualcomm is the world's largest manufacturer of mobile chipsets for smartphones, while NVIDIA generates most its revenue from GPUs for PC gaming and data centers.
(Bloomberg) -- Apple Inc. launched its first iPhones with 5G wireless speeds a few months ago. Now it’s looking to start work on sixth-generation cellular connectivity, or 6G, indicating it wants to be a leader in the technology rather than relying on other companies.The Cupertino, California-based company this week posted job ads seeking wireless system research engineers for current and next-generation networks. The listings are for positions at Apple’s offices in Silicon Valley and San Diego, where the company works on wireless technology development and chip design.“You will have the unique and rewarding opportunity to craft next generation wireless technology that will have deep impact on future Apple products,“ according to the job announcement. “In this role you will be at the center of a cutting-edge research group responsible for creating next generation disruptive radio access technologies over the next decade.”People hired for the positions will “research and design next generation (6G) wireless communication systems for radio access networks” and “participate in industry/academic forums passionate about 6G technology.” Industry watchers don’t expect 6G to roll out until about 2030, but the job listings indicate Apple wants to be involved at the earliest stages in the development of the new technology. A company spokeswoman declined to comment.Read more: Apple Starts Work on Its Own Cellular Modem, Chip Chief SaysApple’s current swath of iPhones use 5G modems designed by Qualcomm Inc. While the company launched its first 5G devices at an opportune time, several phone makers beat it to market and Apple relied heavily on Qualcomm for connection to the new wireless network, which dramatically improves the amount and speed of data that consumers can download. In order to get 5G into the latest iPhones, Apple settled a contentious lawsuit with the San Diego-based chipmaker. Apple’s early involvement in 6G research and design indicates it won’t wait around for the next major advancement.Late last year, Apple joined an alliance of companies working on standards for 6G and other next-generation cellular technologies. The standards and timing for 6G are still loosely defined, but some analysts say the technology could enable speeds more than 100 times faster than 5G.The job listings are another signal of Apple’s continued push into developing more technology in-house. The company has designed main processors for the iPhone and iPad and last year expanded that effort to the Mac. It has also ramped up work on its own custom screens and camera technologies, in addition to wireless chips for AirPods, Apple Watch and precise location data.Apple last year started developing its first custom modem, the chip that allows phones to connect to wireless networks. In a town hall meeting with employees in December, Johny Srouji, Apple’s custom technology and chip head, said that “long-term strategic investments like these are a critical part of enabling our products and making sure we have a rich pipeline of innovative technologies for our future.”Though Apple is laying the groundwork to be a key player in 6G, it has much work ahead to take full advantage of 5G, a technology in its infancy. The company hasn’t expanded 5G to other devices like the Apple Watch and iPad, and it sells multiple iPhones that use older 4G technology. It’s likely that Apple’s first modem will be for 5G connectivity.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.