Nvidia forecasted approximately $54 billion in revenue for the fiscal third quarter, matching Wall Street consensus but below some higher analyst expectations, signaling slowing growth after two years of rapid AI-driven demand. Sales for the prior quarter rose 56% to $46.7 billion, slightly above estimates. China-related difficulties and the sustainability of AI investment were cited as concerns, even as analysts largely maintained bullish price targets and shares have rallied strongly this year. Management projected $3–$4 trillion in AI infrastructure spending by decade-end and authorized an additional $60 billion in buybacks.
Nvidia Corp., the world's most valuable company, gave a tepid revenue forecast for the current period, signaling that growth is decelerating after a staggering two-year boom in artificial intelligence spending. Sales will be roughly $54 billion in the fiscal third quarter, which runs through October, the company said in a statement Wednesday. Though that was in line with the average Wall Street estimate, some analysts had projected more than $60 billion.
During a conference call with analysts Wednesday, the company's leadership rejected the notion that interest in deploying AI infrastructure was flagging. The opportunity ahead is immense, Chief Executive Officer Jensen Huang said. We see $3 trillion to $4 trillion in AI infrastructure spend by the end of the decade. The company also approved an additional $60 billion in stock buybacks. Nvidia had $14.7 billion remaining under its previous repurchase plan at the end of the second quarter.
Analysts largely looked past the outlook, with at least 10 firms raising their 12-month price targets after the results Wednesday. They raised the estimates by an average of 3% to $202.60, according to data compiled by Bloomberg, implying a gain of about 12% from Wednesday's close. Nvidia shares fell 1.9% at 9:52 a.m. in New York on Thursday after briefly rising at the open. They had rallied 35% this year through the close, lifting the company's market capitalization above $4 trillion.
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