Nvidia forecast higher first-quarter revenue on Wednesday, signaling continued strong demand for artificial intelligence chips, and said orders for its latest Blackwell semiconductors were “amazing.”
The corporate’s forecast helps allay doubts around a slowdown in spending on its hardware that emerged last month, following Chinese AI startup DeepSeek’s claims that it had developed AI models rivaling Western counterparts at a fraction of their cost.
Nvidia’s outlook for gross margin in the present quarter was barely lower than expected, though, as the corporate’s Blackwell chip rampup weighs on Nvidia’s profit. Nvidia forecast first-quarter gross margins will sink to 71%, below the 72.2% forecast by Wall Street, in accordance with data compiled by LSEG.
Its shares advanced 1% in prolonged trading, after closing up 3.7% in regular trading. Nvidia is the largest beneficiary of a rally in AI-linked stocks, with its shares up greater than 400% during the last two years.
“Demand for Blackwell is amazing,” CEO Jensen Huang said in an announcement. “We’ve successfully ramped up the massive-scale production of Blackwell AI supercomputers, achieving billions of dollars in sales in its first quarter.”
The Santa Clara, Calif.-based company generated $11 billion of revenue from the Blackwell-related products within the fourth quarter, which was roughly 50% of the corporate’s overall data center revenue, Nvidia’s Chief Financial Officer Colette Kress said in her commentary.
Kress said as Nvidia ramps up production of its Blackwell chips, the corporate will lower its costs and improve its margins, saying it should return to the mid-70% range later within the fiscal 12 months.
The corporate expects revenue of $43 billion, plus or minus 2% for the primary quarter, compared with analysts’ average estimate of $41.78 billion, in accordance with LSEG.
“Despite the breakthroughs from DeepSeek, Nvidia’s momentum with Hyperscalers seems to proceed,” Third Bridge analyst Lucas Keh said, referring to large cloud-computing corporations.
Chinese corporations are ramping up orders for Nvidia’s H20 AI chip resulting from booming demand for DeepSeek’s low-cost AI model, Reuters reported on Monday.
Demand has grown for Nvidia’s advanced chips that may speedily process the massive amounts of information utilized by generative AI applications, as corporations race one another to emerge as leaders of the brand new technology. Generative AI is a form of artificial intelligence that may learn from data and improve over time.
John Belton, a portfolio manager at Nvidia investor Gabelli Funds, said the forecast “must be a positive read for AI demand and investment cycle.”
Big Tech corporations – amongst the most important buyers of Nvidia chips – have remained steadfast on their forecast for big capital expenditures to expand AI infrastructure, despite investor concerns over payouts. Microsoft has earmarked $80 billion for AI in its current fiscal 12 months, while Meta Platforms has pledged as much as $65 billion.
A recent brokerage report suggested that Microsoft has scrapped leases for sizable US data center capability, suggesting potential oversupply. But Reuters reported on Monday that Chinese corporations are ramping up orders for Nvidia’s H20 AI chip resulting from booming demand for DeepSeek’s low-cost AI model.
The Stargate data center project announced last month by President Trump will use Nvidia’s Spectrum X ethernet for networking, Kress said. The ethernet products are included in the corporate’s data center segment.
Nvidia reported adjusted per-share profit of 89 cents, compared with estimates of 84 cents a share. Revenue for the fourth quarter grew 78% to $39.3 billion, beating estimates of $38.04 billion.
Sales within the data-center segment, which accounts for many of Nvidia’s revenue, grew 93% to $35.6 billion within the quarter ended January 26, above estimates of $33.59 billion. The segment had recorded growth of 112% within the prior quarter.
Nvidia forecast higher first-quarter revenue on Wednesday, signaling continued strong demand for artificial intelligence chips, and said orders for its latest Blackwell semiconductors were “amazing.”
The corporate’s forecast helps allay doubts around a slowdown in spending on its hardware that emerged last month, following Chinese AI startup DeepSeek’s claims that it had developed AI models rivaling Western counterparts at a fraction of their cost.
Nvidia’s outlook for gross margin in the present quarter was barely lower than expected, though, as the corporate’s Blackwell chip rampup weighs on Nvidia’s profit. Nvidia forecast first-quarter gross margins will sink to 71%, below the 72.2% forecast by Wall Street, in accordance with data compiled by LSEG.
Its shares advanced 1% in prolonged trading, after closing up 3.7% in regular trading. Nvidia is the largest beneficiary of a rally in AI-linked stocks, with its shares up greater than 400% during the last two years.
“Demand for Blackwell is amazing,” CEO Jensen Huang said in an announcement. “We’ve successfully ramped up the massive-scale production of Blackwell AI supercomputers, achieving billions of dollars in sales in its first quarter.”
The Santa Clara, Calif.-based company generated $11 billion of revenue from the Blackwell-related products within the fourth quarter, which was roughly 50% of the corporate’s overall data center revenue, Nvidia’s Chief Financial Officer Colette Kress said in her commentary.
Kress said as Nvidia ramps up production of its Blackwell chips, the corporate will lower its costs and improve its margins, saying it should return to the mid-70% range later within the fiscal 12 months.
The corporate expects revenue of $43 billion, plus or minus 2% for the primary quarter, compared with analysts’ average estimate of $41.78 billion, in accordance with LSEG.
“Despite the breakthroughs from DeepSeek, Nvidia’s momentum with Hyperscalers seems to proceed,” Third Bridge analyst Lucas Keh said, referring to large cloud-computing corporations.
Chinese corporations are ramping up orders for Nvidia’s H20 AI chip resulting from booming demand for DeepSeek’s low-cost AI model, Reuters reported on Monday.
Demand has grown for Nvidia’s advanced chips that may speedily process the massive amounts of information utilized by generative AI applications, as corporations race one another to emerge as leaders of the brand new technology. Generative AI is a form of artificial intelligence that may learn from data and improve over time.
John Belton, a portfolio manager at Nvidia investor Gabelli Funds, said the forecast “must be a positive read for AI demand and investment cycle.”
Big Tech corporations – amongst the most important buyers of Nvidia chips – have remained steadfast on their forecast for big capital expenditures to expand AI infrastructure, despite investor concerns over payouts. Microsoft has earmarked $80 billion for AI in its current fiscal 12 months, while Meta Platforms has pledged as much as $65 billion.
A recent brokerage report suggested that Microsoft has scrapped leases for sizable US data center capability, suggesting potential oversupply. But Reuters reported on Monday that Chinese corporations are ramping up orders for Nvidia’s H20 AI chip resulting from booming demand for DeepSeek’s low-cost AI model.
The Stargate data center project announced last month by President Trump will use Nvidia’s Spectrum X ethernet for networking, Kress said. The ethernet products are included in the corporate’s data center segment.
Nvidia reported adjusted per-share profit of 89 cents, compared with estimates of 84 cents a share. Revenue for the fourth quarter grew 78% to $39.3 billion, beating estimates of $38.04 billion.
Sales within the data-center segment, which accounts for many of Nvidia’s revenue, grew 93% to $35.6 billion within the quarter ended January 26, above estimates of $33.59 billion. The segment had recorded growth of 112% within the prior quarter.
