Nvidia Chief Financial Officer Colette Kress offered an update on the chipmaker’s operations in the wake of the coronavirus outbreak on Tuesday. The executive explained her firm’s supply chain should be back to 70-80 percent capacity by the end of March following a COVID-19 prompted slowdown last month. She also mentioned that her company’s hardware had experienced a sharp increase in usage during the global health crisis.
Nvidia Sees Surge in GPU Usage
Since the World Health Organization first identified it last December, COVID-19 has caused a rash of fatalities and worldwide disruption. Staffers in various industries have been instructed to work remotely to slow the spread of the disease. Besides, more than 300 million children across the globe have been sent home for the same reason.
As such, it’s not surprising Nvidia has seen a 50 percent increase in gaming hours from its installed user base. With so many public activities suspended due to quarantine orders, people are turning to their favorite PC titles for entertainment.
With large corporations like Google and Amazon issuing work from home mandates, Nivida-empowered data centers have also experienced a surge of activity.
Kress says her firm has sold a lot of chipsets to companies interested in optimizing their artificial intelligence (AI) workloads. Because of medically necessitated absences and shelter-in-place orders, corporations are operating with diminished headcounts and are addressing the problem with natural language applications and smart inventory management solutions.
The COVID-19 outbreak has also prompted medical researchers to utilize Nvidia’s processors to expedite their work.
Earlier this month, cloud service provider CoreWeave dedicated 6,000 of its GPUs to aid a Stanford University project focused on researching new coronavirus treatments. The chipmaker also offered scientists free access to its Parabricks genome sequencing tool.
Nvidia’s Robust Outlook
Because of the impact the coronavirus has had on global supply chains and consumer demand, several large tech companies have pulled their quarterly financial guidance. However, Nvidia is an exception as the firm said it stands by the outlook it presented last month. The chipmaker recently reaffirmed its $3 billion revenue forecast for the period ending April, a 35 percent year-over-year increase.
Wall Street shares Nvidia’s confidence as the company’s share price rose by 17.2 percent Tuesday.
Besides, market experts don’t believe the corporation’s hot streak is going to end anytime soon. Needham analyst Rajvindra Gill recently upgraded the manufacturer’s stock from “hold” to “buy.”
Gill explained the firm’s “superior balance sheets and robust cash flow” make it appealing in a time of uncertainty. The analyst also said the medical industry would have demand for its GPUs to expedite DNA sequencing and drug research.
Thanks to the rapid recovery of its production capacity and the broader application of its chipsets, Nvidia is on course to have a very strong 2020 despite the impact of the pandemic.