By Max A. Cherney and Arsheeya Bajwa
(Reuters) -Nvidia provides income in the first quarter above Wall Street estimates on Wednesday, reporting a high demand for its market-making artificial intelligence chips and said demand for its new Blackwell semiconductors was “incredible”.
The company’s prospects for the gross margin during the current quarter were slightly lower than expected, however, because the Blackwell chips rampup of the company weighs on the benefit of Nvidia. The raw margins of the first quarter forecast of NVIDIA takes place at 71%, below the forecasts of 72.2% by Wall Street, according to data compiled by LSEG.
Its shares fell by around 1% in the jerky extensive exchanges, after closing 3.7% in regular exchanges. NVIDIA is the largest beneficiary of a Gathering in AI stocks related to AI, with its shares of more than 400% in the past two years.
“Blackwell’s request is incredible,” CEO Jensen Huang said in a statement. “We have managed to accelerate the massive production of blackwell ai supercomputers, making billions of dollars in sales in the first quarter.”
The company provides for a turnover of $ 43 billion, more or less 2% for the first quarter, compared to the average estimate of analysts of $ 41.78 billion according to LSEG.
Demand has increased for advanced NVIDIA fleas which can quickly process the large amounts of data used by AI -generating applications, while businesses are mutually rushing to emerge as leaders in the new technology. Generative AI is a type of artificial intelligence that can learn data and improve over time.
“Nvidia has reported a strong beat of income, but the raw guidelines on the margin are disappointing, two factors that could balance the stock tomorrow,” said DA Davidson analyst Gil Luria.
NVIDIA’s forecasts also help to appease doubts around a slowdown in expenses on its equipment which emerged last month, following the assertions of the startup of Chinese AI Deepseek that he had developed models of AI competing with Western counterparts to a fraction of their cost.
This could add fuel to the AI spray rally after the tumultuous retirement of the magnificeous seven stocks of their peaks at the end of 2024 while the optimism of Wall Street decreased under the shadow of Deepseek innovations.
Nvidia declared a share of 89 cents adjusted, against estimates of 84 cents per share. Fourth quarter turnover increased by 78% to 39.3 billion dollars, beating estimates of $ 38.04 billion.
Sales of the data centers segment, which represent most of Nvidia’s income, increased by 93% to 35.6 billion dollars in the quarter enclosed on January 26, which has estimates over $ 33.59 billion. The segment had recorded growth of 112% in the previous quarter.
(Report of Max A. Cherney and Stephen Nelis in San Francisco, Arsheeya Bajwa in Bengaluru; edition by Shounak Dasguta and Rod Nickel)
