Nvidia posted better than expected results for the January quarter on Wednesday and forecast current quarter revenue above market estimates.
Nvidia reported a ninety-four percent surge in quarterly revenue to sixty-eight point thirteen billion dollars, beating estimates and projecting stronger first-quarter sales, while signaling continued investment in artificial intelligence despite rising competition.
Nvidia posted better-than-expected results for the January quarter on Wednesday and forecast current-quarter revenue above market estimates.
The chipmaker reported that January-quarter sales rose 94% to $68.13 billion, exceeding estimates of $66.21 billion.
It also expects fiscal first-quarter sales of $78 billion, above analysts’ forecasts.
However, Nvidia shares traded flat in after-hours trading.
Investors, accustomed to strong revenue beats from the company for 14 consecutive quarters, were likely disappointed by the relatively uneventful results, which were released 10 minutes later than expected.
During a post-earnings conference call, Nvidia executives were asked whether the company planned to return to shareholders some of the $100 billion in cash it is expected to generate this year.
In response, Chief Financial Officer Colette Kress said the company intends to continue investing in the AI ecosystem.
Chief Executive Officer Jensen Wong stated that the output generated by AI models will form the foundation of future computing, and Nvidia will continue expanding infrastructure to support that vision.
The company also said it has secured sufficient chip inventory and capacity to meet demand beyond the next several quarters.
However, it added that supply shortages will affect its gaming business.
Despite its performance, there are emerging signs of risk to Nvidia’s long-standing dominance in AI chip manufacturing, as rivals AMD and Google have secured major deals with key customers.
The chipmaker reported that January-quarter sales rose 94% to $68.13 billion, exceeding estimates of $66.21 billion.
It also expects fiscal first-quarter sales of $78 billion, above analysts’ forecasts.
However, Nvidia shares traded flat in after-hours trading.
Investors, accustomed to strong revenue beats from the company for 14 consecutive quarters, were likely disappointed by the relatively uneventful results, which were released 10 minutes later than expected.
During a post-earnings conference call, Nvidia executives were asked whether the company planned to return to shareholders some of the $100 billion in cash it is expected to generate this year.
In response, Chief Financial Officer Colette Kress said the company intends to continue investing in the AI ecosystem.
Chief Executive Officer Jensen Wong stated that the output generated by AI models will form the foundation of future computing, and Nvidia will continue expanding infrastructure to support that vision.
The company also said it has secured sufficient chip inventory and capacity to meet demand beyond the next several quarters.
However, it added that supply shortages will affect its gaming business.
Despite its performance, there are emerging signs of risk to Nvidia’s long-standing dominance in AI chip manufacturing, as rivals AMD and Google have secured major deals with key customers.
