Nvidia has revealed a robust revenue forecast, dispelling concerns of an AI industry bubble. The company anticipates sales of $65 billion in the upcoming quarter, surpassing analysts’ expectations by $3 billion. This positive outlook indicates sustained demand for Nvidia’s AI accelerators, quelling fears of oversaturation in the market.
The world’s most valuable company expects sales of about $65 billion in the January quarter – roughly $3 billion more than analysts predicted. Nvidia also said that a half-trillion-dollar revenue bonanza due in coming quarters may be even bigger than anticipated.
The outlook signals that demand remains robust for Nvidia’s artificial intelligence accelerators, the pricey and powerful chips used to develop AI models. Nvidia had faced growing fears in recent weeks that the runaway spending on such equipment wasn’t sustainable.
“There’s been a lot of talk about an AI bubble,” chief executive officer Jensen Huang said on a conference call with analysts. “From our vantage point, we see something very different.”
The upbeat commentary sent shares up about 4% on Thursday, pushing the company’s market value to about $4.7 trillion. They had gained 39% this year through Wednesday’s close.
Nvidia results have become a barometer for the health of the AI industry, and the news lifted a variety of related stocks. CoreWeave, a provider of AI computing, gained about 9%. Its peer Nebius Group climbed more than 7%. Benchmarks in South Korea, Taiwan, and Japan gained, fueled by Nvidia suppliers including Taiwan Semiconductor Manufacturing Company and Tokyo Electron.
