(Reuters) -AI chipmaker Nvidia, the dominating force behind the U.S. stock market rally since 2023, forecast third-quarter revenue above Wall Street estimates on Wednesday.
Helped by robust demand for its artificial intelligence chips from cloud providers expanding infrastructure to power generative AI technology, Nvidia expects revenue of $54 billion, plus or minus 2%, in the third quarter. That compared with analysts’ average estimate of $53.14 billion, according to data compiled by LSEG.
Shares of the world’s most valuable firm were down 2% in extended trading, paring steeper initial losses after the report. NVDA gained more than a third so far in 2025 to outpace the benchmark S&P 500 Index’s year-to-date rise of nearly 10%.
COMMENTS:
DIMITRI ZABELIN, SENIOR ANALYST, AI, PITCHBOOK, SAN FRANCISCO, CA
“Since the onset of the AI boom in late 2022, the company has largely beaten forecasts, propelled by explosive growth in its data center division.
“As U.S. hyperscaler demand continues to expand, Nvidia is diversifying by turning to sovereign buyers to anchor the next wave of adoption, positioning national governments as strategic clients for its hardware.
“PitchBook’s comp sheet analysis also shows hyperscalers and AI infrastructure leaders outperforming benchmarks, underscoring durable demand for compute hardware as governments and enterprises step up procurement.”
LARRY TENTARELLI, CHIEF TECHNICAL STRATEGIST, BLUE CHIP DAILY TREND REPORT
“In the very short-term, the stock is seeing some downside testing, as they did not drastically exceed the consensus forecasts. Beyond the short-term volatility, Nvidia remains the benchmark Artificial Intelligence stock and the most direct way to invest in the theme.
“The AI trade has been the major driver of this bull market over the past 30 months and we expect that both AI and Nvidia will continue to lead.
“CEO Jensen Huang’s comments on the conference call will be closely monitored by markets, but barring any slowdown comments from Huang, we would be buyers of Nvidia on any near-term weakness. In our view, this is the dominant AI market leader to own.”
CHUCK CARLSON, CHIEF EXECUTIVE OFFICER, HORIZON INVESTMENT SERVICES, HAMMOND, INDIANA
The results “were okay. They weren’t blow-the-doors-off, but nor were they bad. And I think the stock price movement is going to depend a lot on what they say on the earnings call, especially if they give color on China.”
“I think people were a little disappointed in the data center number, which looks like the sequential growth was about 5% … and I think people might have been looking for a little bit more on that side.”
“I’m not surprised that the stock in the after-market is down a bit, but it is not down a ton, especially given the strength that the stock is showing so far this year.”
(Compiled by the Global Finance & Markets Breaking News team)
