Nvidia’s Q4 revenue forecast landed slightly above estimates at $37.5 billion, but failed to satisfy high investor expectations, with shares dipping amid supply-chain constraints.
Nvidia’s Modest Forecast Raises Questions About Expectations
Even if some investors have made Nvidia the most valuable company in the world, the company still fell short of meeting their high expectations for fourth-quarter revenue, which it predicted on Wednesday, which was marginally higher than predictions.
According to Reuters, the stock of the Santa Clara, California-based firm dropped almost 2% during the course of the extended trading session. On Wednesday, they had ended the day down 0.8%.
Analysts See Mixed Signals in Nvidia’s Q4 Revenue Outlook
According to data provided by LSEG, analysts had an average estimate of $37.09 billion for the fourth quarter, while the firm predicted revenue of $37.5 billion, plus or minus 2 percent.
"The age of AI is in full steam, propelling a global shift to NVIDIA computing," stated Jensen Huang, CEO of Nvidia. "Demand for Hopper and anticipation for Blackwell - in full production - are incredible as foundation model makers scale pretraining, post-training and inference," he stated, alluding to two high-performing AI processors.
Soaring Stock Prices Reflect Investor Optimism Despite Challenges
Shares of Nvidia, which had risen by more than 20% in the preceding two months, were riding high on anticipation of the news. In the past two years, the stock has increased by more than nine times its initial value, and it has nearly quadrupled this year alone.
Nvidia has been a Wall Street darling due to its high-demand graphics processing units (GPUs), which power complex generative AI systems. However, the business has been unable to post its revenue beats due to supply-chain issues, CNA points out.
Supply Constraints Continue to Hamper Nvidia’s Performance
The company's manufacturing partner TSMC has limited capacity for innovative production procedures, which has been a bottleneck for its chip supply.
Earnings per share for the third quarter came in at 81 cents, which was lower than the 75 cents predicted by analysts.


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