Nvidia forecasts first quarter revenues ahead of the market on Wednesday, and expects robust demand for its major AI chips to last as businesses spend a lot of money to expand their generative artificial intelligence infrastructure.
The shares rose about 1% in choppy extended trading after closing 3.7% in regular trading.
Nvidia is the largest beneficiary of AI-related stock gatherings, with stocks growing by more than 400% over the past two years.
The company expects revenue of $43 billion, plus or minus 2% for the first quarter, compared to an analyst average estimate of $4178 billion, according to data compiled by LSEG.
Demand for NVIDIA's advanced chips has not waned. This allows businesses to quickly process the large amount of data used in generated AI applications as they compete with each other to emerge as new technology leaders.
Generated AI is a type of artificial intelligence that can learn from data and improve over time.
Nvidia's optimistic forecasts help ease doubts about slowing down spending on hardware that occurred last month following claims that it had developed an AI model comparable to its Western counterparts at the cost of Chinese AI startup Deepseek.
This allows the sputtering AI rally to be fueled after a tumultuous Sevenstock retreat from the peak of late 2024 as Wall Street optimism faded under the shadow of Deepshek's innovation.
Nvidia's revenues rose 78% to $39.3 billion in the fourth quarter, breaking the $38.04 billion estimate.
