Nvidia revenue forecasts for first quarter exceed estimates
Feb 26, 2025 - fastcompany.com
Nvidia has forecasted first-quarter revenue above market expectations, anticipating continued strong demand for its AI chips as businesses invest heavily in generative AI infrastructure. The company's shares rose slightly in extended trading following a significant increase during regular trading. Nvidia, a major player in the AI stock rally, has seen its shares rise over 400% in the past two years. The company projects first-quarter revenue of $43 billion, surpassing analysts' average estimate of $41.78 billion. This demand is driven by the need for advanced chips capable of processing large data volumes for generative AI applications.
Nvidia's positive outlook helps counter concerns about a potential slowdown in hardware spending, which arose after Chinese AI startup DeepSeek claimed to have developed cost-effective AI models rivaling Western counterparts. This development could reignite the AI stock rally, which had faltered after the "Magnificent Seven" stocks retreated from their late-2024 highs. Nvidia's fourth-quarter revenue increased by 78% to $39.3 billion, exceeding estimates of $38.04 billion.
Key takeaways:
Nvidia forecasts first-quarter revenue above market estimates, driven by strong demand for its AI chips.
The company's shares have risen significantly, up more than 400% over the last two years, benefiting from the AI stock rally.
Nvidia expects first-quarter revenue of $43 billion, surpassing analysts' average estimate of $41.78 billion.
The optimistic forecast helps counter concerns about a slowdown in hardware spending, following claims from Chinese AI startup DeepSeek.
