Nvidia on Wednesday expected fourth-quarter revenue to be slightly better than expected, but still fell short of the lofty expectations of some investors who made the company the world's most valuable company.
Shares of the Santa Clara, California-based company fell about 2% in after-hours trading. It closed 0.8% lower on Wednesday.
According to data compiled by LSEG, the company's fourth-quarter revenue forecast was $37.5 billion (plus or minus 2%), compared to analysts' average estimate of $37.09 billion.
“The era of AI is in full swing, driving the global transition to NVIDIA computing,” said Nvidia CEO Jensen Huang. “As foundational model makers scale pre-training, post-training, and inference, demand for Hopper and expectations for Blackwell to reach full production are incredibly high,” he said, referring to the two high-performance AI chips. he stated.
Nvidia stock has risen more than 20% in the past two months as expectations rise ahead of the earnings report. The stock has nearly quadrupled so far this year and more than nine times over the past two years.
Demand for the company's chips, which form the brains of complex generative AI systems, has surged while supply chain failures have helped NVIDIA report strong revenue growth that helped it become a darling of Wall Street. is becoming difficult.
One bottleneck in chip supply is the company's manufacturing partner, TSMC, whose advanced manufacturing technology capabilities are limited.
The company's third-quarter adjusted earnings were 81 cents per share, compared to expectations of 75 cents per share.
