Nvidia Chief Executive Officer Jensen Huang soothed investor fears about a China slowdown by delivering a solid sales forecast, saying that the AI computing market is still poised for "exponential growth.”
The company expects revenue of about $45 billion in its second fiscal quarter, which runs through July. New export restrictions will cost Nvidia about $8 billion in Chinese revenue during the period, but the forecast still met analysts’ estimates. That helped propel the shares about 4% Wednesday in extended trading.
The outlook shows that Nvidia is ramping up production of Blackwell, its latest semiconductor design. The chipmaker — now the world’s largest by revenue and market value — dominates the field of AI accelerators, the components that help develop and run artificial intelligence models. And an ever-broader lineup of hardware and software is letting Nvidia sell more products to customers.
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