Nvidia on Wednesday reported fourth-quarter revenue slightly above estimates, but still failed to meet the high expectations of some investors who had built it world’s most valuable firm,
Shares of the Santa Clara, California-based company fell about 2% in extended trading. They had closed 0.8% lower on Wednesday.
The company projected revenue of $37.5 billion for the fourth quarter, plus or minus 2%, compared with analysts’ average estimate of $37.09 billion, according to data compiled by LSEG.
“The era of AI is in full swing, driving the global shift towards NVIDIA computing,” said Jensen Huang, CEO of NVIDIA. “The demand for Hopper and the anticipation for Blackwell – in full production – is incredible as foundation model makers scale pretraining, post-training and inference,” he said, referring to the two high-performance AI chips.
Expectations were high ahead of the results, with Nvidia shares rising more than 20% in the past two months. The stock has nearly quadrupled so far this year and is up more than ninefold in the past two years.
While the demand for brain-making company’s chips is increasing Complex Generative AI SystemsSupply-chain disruptions have made it difficult for Nvidia to report the big decline in revenue that has helped make it a Wall Street darling.
One of the bottlenecks for its chip supply has been the limited capacity for advanced manufacturing technologies at the company’s manufacturing partner TSMC.
The company reported third-quarter adjusted earnings of 81 cents per share, compared with estimates of 75 cents per share.
