Despite manufacturing challenges and supply constraints, demand for Nvidia's products is expected to exceed supply for several quarters. The company's gross margin is expected to dip this quarter but rebound when the new products reach larger-scale production. Nvidia's growth over the past two years has been significant, with sales poised to double for a second year in a row. The company's data center unit saw revenue double from a year earlier, beating Wall Street estimates.
Key takeaways:
- Nvidia Corp. is confident that its new product lineup, including the highly anticipated Blackwell products, can maintain the company's AI-fueled growth run, despite higher production and engineering costs.
- The company's sales forecast for the current period didn't match some of Wall Street's more optimistic projections, causing a tepid reaction from investors and a 2% drop in shares in late trading.
- Nvidia's biggest moneymaker is its accelerator chip, which helps develop artificial intelligence models. Demand for these products is expected to exceed supply for several quarters.
- Nvidia's growth over the past two years has been significant, with sales poised to double for a second year in a row. The company's revenue rose 94% to $35.1 billion in the fiscal third quarter.