Nvidia Rallies After Announcing New CPU Development Plan And Strong Q1 Results


Nvidia shares (NASDAQ: NVDA) rallied 5.62% on Monday as the company announced new plans to manufacture its first data center CPU for Giant AI and high performance computing workloads.


This represents the company's first Arm-based CPU, and they aim to directly challenge a core Intel market by pushing further into the data center computing space following the $40B purchase of Arm last year.


The news sent Intel and AMD shares down by about 4%, as the CPU is anticipated to deliver a significant performance leap in addressing the most advanced technological applications, including natural language processing, recommender systems, and AI supercomputing.


The chip is set to be released in 2023, and it will be capable of delivering 10x the performance of today’s fastest servers on the most complex computing workloads.


Analysts had been expecting slowed sales performance after Nvidia’s recent strong run, but in a separate statement released Monday, the chipmaker announced its continued acceleration in growth. Revenues beat analyst expectations by 18% for Q1, even as the chip industry struggles to cope with a supply shortage.