By Dhirendra Tripathi
Investing — Nvidia (NASDAQ:NVDA) shares erased their early losses and traded 0.8% higher in Thursday’s premarket as concerns over supply chain issues that have plagued chipmakers last few quarters kept the market sentiment for the stock in check.
A revenue forecast of $6.30 billion for the second quarter with ‘plus or minus 2%’ possibility was also keeping the traders guessing.
Nvidia EVP and Chief Financial Officer Colette Kress said the company’s lead-times for data center products and other component suppliers had lengthened. This had led to outstanding inventory purchase obligations almost doubling at the end of the quarter to $3.46 billion from $1.76 billion a year earlier.
Many chipmakers including Nvidia, TSMC, NXP (NASDAQ:NXPI) and AMD have been facing supply chain issues as demand has boomed for mobiles, EVs and smart devices during the pandemic while chip production ground to a halt.
The company posted record net income for the first quarter and record revenues as well.
Net income for the quarter ended May 2 more than doubled, rising 109% to $1.91 billion on GAAP basis.
Revenues rose 84% from a year ago $5.66 billion as companies used its chips to power laptops and data centers.
All revenues streams, namely gaming, data centers and professional visualization platforms, posted record revenues. Demand from OEMs grew too with automotive being the only market platform in the company’s bouquet degrowing.
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