The revenue and gross margin forecast for the current quarter were not far from analysts’ expectations
The revenue and gross margin forecast for the current quarter were not far from analysts’ expectations and failed to live up to a recent history of trouncing Wall Street’s targets, overshadowing a beat on second-quarter revenue and adjusted earnings as well as the unveiling of a $50 billion share buyback.
In the last three consecutive quarters, Nvidia recorded revenue growth of more than 200 per cent, and the company’s capacity to surpass estimates is at increasingly greater risk as each success prompts Wall Street to raise its targets even higher.
CEO Jensen Huang played up insatiable demand for the company’s powerful graphics processors that have become the workhorses for generative AI technology such as OpenAI’s ChatGPT. “You have more on more on more”, he told analysts on a conference call, describing demand.
Huang confirmed media reports that a ramp-up in production of Nvidia’s next-generation Blackwell chips was delayed until the fourth quarter, but downplayed the impact, saying customers were snapping up current-generation Hopper chips.
The company said it was shipping Blackwell samples to its partners and customers after tweaking its design, and that it expected several billion dollars in revenue from these chips in the fourth quarter.
Much hinges on this outlook from Nvidia, whose stock has surged more than 150 per cent this year, adding $1.
