by Max A. Cherney and Arsheeya Bajwa
(Reuters) – NVIDIA communicated forecasts above expectations for the current quarter on Wednesday, saying to anticipate a solid demand for its chips intended for artificial intelligence (AI), while companies spend massively to strengthen their infrastructures in this area.
The title of the group carried out sawtooth movements in the post-cluster stock exchange, marking a slight withdrawal after finishing the session up 3.7% at Wall Street.
For the current quarter, NVIDIA, however, says he expects her adjusted net margin to drop at 71%, compared to 72.2% anticipated by the markets according to LSEG data, citing the financial efforts made for the production of its cutting -edge blackwell semiconductors.
“The demand for Blackwell is incredible,” said Managing Director Jensen Huang in a statement. “We have successfully accelerated the large-scale production of Blackwell super-manager, making billions of dollars in sales in the first quarter,” he added.
Nvidia, among the main beneficiaries of the enthusiasm around the AI, provides over the period of January-March a turnover of $ 43 billion, with a margin of error of 2% down or up. Analysts were tabling on average for an amount of 41.78 billion, according to LSEG data.
While competition rages among companies to win the generative AI race, the demand for the dedicated chips of Nvidia has continued to grow.
The group’s forecasts are able to appease the fears that occurred last month with the announcement by the Chinese firm Deepseek of an AI model presented as at least equivalent to Western models for a significantly lower cost.
This could more broadly give breath to the enthusiasm around the AI, the “seven magnificent” of Wall Street having been shaken by the announcement of Deepseek and saw their stock market records from the end of 2024.
Nvidia reported a profit adjusted by action of 89 cents in the fourth quarter, against a consensus of 84 cents.
Its turnover over the period October-December increased by 78% to 39.3 billion dollars, beating expectations which were on average at 38.04 billion.
Sales of the “Data Center” division, which represents most of NVIDIA’s income, recorded a jump of 93% to 35.6 billion dollars, an amount greater than the consensus of 33.59 billion.
(Max A. Cherney and Stephen Nellis in San Francisco, Arsheeya Bajwa in Bangalore; Jean Terzian)
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