NVIDIA bets on new data center chips for growth as sales outlook tops estimates
Key takeaways
- NVIDIA expects revenue of $91 billion, plus or minus 2%, compared with estimates of $86.84 billion, according to data compiled by LSEG.
- The company’s results are largely considered a barometer for the AI market’s health, as its chips are used in virtually every major data center in the world, powering the largest and most advanced AI models.
- “Nvidia delivered another beat, but at this point that’s essentially priced in as it keeps beating quarter after quarter,” said eMarketer analyst Jacob Bourne.
Why this matters: local context for readers following news across Pakistan and the region.
Add ARY News on Google AAResize NVIDIA CEO Jensen Huang on Wednesday aimed to assure investors that the world’s most valuable company can keep up its blockbuster growth with the help of a broad base of customers and that new products will help it beat the $1 trillion in sales it has forecast for its flagship AI chips.
Shares fell 1.6% in extended trading, however, a sign that investors believe Nvidia will face tougher competition even though it forecast second-quarter revenue above Wall Street estimates and announced an $80 billion share repurchase program.
NVIDIA expects revenue of $91 billion, plus or minus 2%, compared with estimates of $86.84 billion, according to data compiled by LSEG.