Nvidia, the chipmaker at the center of an artificial intelligence boom, gained in late trading on Wednesday after a bullish sales forecast showed that AI computing spending remains strong.
The company said its second-quarter revenue will be about $28 billion, topping the $26.8 billion predicted by analysts. Results in the fiscal first quarter, which ended April 28, also beat projections — lifted by growth in its data center division.
The big question heading into the earnings report was whether Nvidia’s latest numbers could justify the dizzying run-up in its stock. The shares had gained 92% this year through Wednesday’s close, fueled by investor hopes that the company would continue to shatter expectations.