Summary
Nvidia predicts its revenue for the fourth quarter will be higher than analysts expected, driven by strong demand for its AI chips. The company forecasts sales around $65 billion, despite concerns about an AI investment bubble. Nvidia's data center segment continues to perform well, but some analysts warn about potential growth limits due to infrastructure challenges.
Key Facts
- Nvidia expects fourth-quarter sales of around $65 billion, above analysts' estimates.
- The data center segment brought $51.2 billion in revenue in the last quarter, exceeding expectations.
- There are concerns about an AI investment bubble as Nvidia's shares fell by 8% in November after significant previous growth.
- Four customers made up 61% of Nvidia's total sales in its third fiscal quarter.
- Nvidia's CEO mentioned $500 billion in bookings for advanced chips up to 2026.
- Microsoft reported a large capital expenditure, mainly for chips, partly driven by AI data center expansion.
- Nvidia plans an adjusted gross margin of 75% for the fourth quarter, slightly higher than market expectations.
