Nvidia’s AI Chip Revenue Forecast Beats Estimates but Shares Drop 1.3%
Nvidia projected stronger-than-expected quarterly revenue driven by surging demand for its AI chips, reassuring investors about sustained growth. Shares nonetheless fell 1.3% in after-hours trading as the guidance omitted any China sales outlook and only modestly exceeded analyst forecasts.
1. Earnings Beat and Outlook
Nvidia reported a forecast-beating revenue outlook for its upcoming quarter, citing robust demand for its flagship AI chips. CEO Jensen Huang emphasized continued enterprise and sovereign interest, positioning the company to capitalize on expanding data center and AI infrastructure spending.
2. Share Reaction and Guidance Gaps
Despite the upbeat revenue projection, Nvidia’s shares declined 1.3% in after-hours trading. Investors expressed disappointment over the lack of any China sales in the guidance and felt the forecast only modestly surpassed consensus estimates, dampening the initial rally.