1 day Ago By Reuters
Nvidia forecast fourth-quarter revenue slightly above estimates on Wednesday, but still failed to meet lofty expectations of some investors who have made it the world’s most valuable firm . Shares of the Santa Clara, California-based company fell roughly 2% in extended trading. They had closed down 0.
8% on Wednesday. The company forecast revenue of $37.5 billion, plus or minus 2% for the fourth quarter, compared with analysts’ average estimate of $37.
09 billion according to data compiled by LSEG. “The age of AI is in full steam, propelling a global shift to NVIDIA computing,” Nvidia CEO Jensen Huang said. “Demand for Hopper and anticipation for Blackwell – in full production – are incredible as foundation model makers scale pretraining, post-training and inference,” he said, referring to two high-performing AI chips.
Expectations ran high ahead of the results, with Nvidia shares up more than 20% over the last two months. The stock has nearly quadrupled so far this year and is up more than nine-fold over the last two years. While demand is soaring for the company’s chips that make up the brains of complex generative AI systems , supply-chain snags have made it harder for Nvidia to report the big beats on revenue that have helped make it a Wall Street darling.
One of the bottlenecks for its chip supply has been the limited capacity for advanced manufacturing techniques at the company’s manufacturing partner TSMC. The company recorded third-quarter adjusted earnings of 81 cents per share, compared to estimates of 75 cents per share..
