Nvidia Forecasts Revenue Above Estimates on AI Demand
Nvidia projects first-quarter sales of 78 billion dollars as AI demand remains strong. The firm beat quarterly estimates and secured future chip capacity.
NVIDIA Corporation[Symbol:{\"assets\":{\"symbol\":\"NVDA\"}}] has issued a robust revenue forecast for the first quarter that exceeded market expectations, buoyed by the relentless demand for artificial intelligence processors among major technology firms. The company stated it has secured sufficient inventory and manufacturing capacity to meet demand for several quarters, addressing investor concerns that supply constraints at its primary manufacturer, TSMC, might hinder growth. While the AI sector thrives, the company noted that supply shortages would continue to impact its gaming division.
For the fiscal first quarter, the world's most valuable chipmaker expects sales of approximately $78 billion, plus or minus 2%, surpassing the average analyst estimate of $72.60 billion. This optimistic outlook follows a strong fourth quarter where the company reported revenue of $68.13 billion and adjusted earnings of $1.62 per share, both of which beat Wall Street projections. Following the announcement, the company's shares rose more than 3% in extended trading.
