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Nvidia Corp., the world’s most valuable company, gave a strong revenue forecast for the current period, helping counter concern that an explosion in AI spending is headed for a crash.
Sales will be about $65 billion in the fiscal fourth quarter, which runs through January, the chipmaker said in a statement Wednesday.
Analysts had estimated $62 billion on average, with some predictions ranging as high as $75 billion.
The outlook signals that demand remains strong for Nvidia’s artificial intelligence accelerators, the pricey and powerful chips used to develop AI models. Nvidia has faced growing fears that the runaway spending on such equipment isn’t sustainable.
Nvidia shares gained about 4% in late trading after the report was released. They had been up 39% this year through the close.
Nvidia, founded in 1993, pioneered the market for graphics chips used to create realistic images for computer games. Advanced Micro Devices (AMD) is its only remaining major rival in that business.
Nvidia built its AI dominance by adapting that same chip architecture to crunch massive amounts of data — helping researchers create software that’s begun to rival and resemble human capabilities.
The Santa Clara, California-based company still has more than 90% of the market for AI accelerator chips. It’s added other products to that lineup to help solidify its edge, including networking, software and other services.
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🔥 NVIDIA is just unstoppable! The way they’re pushing AI & GPU tech is next-level 🚀Every update feels like the future coming early 😳💚 Can’t wait to see what’s next! ⚡🤖💯