San Francisco: Nvidia has forecast stronger than expected revenue for the coming quarter, signaling that global demand for artificial intelligence technology continues to grow at a rapid pace.
The chipmaker said it expects first quarter revenue to reach about 78 billion dollars, well above market expectations. The forecast reflects continued heavy spending by major technology companies building artificial intelligence systems and data centers.
The company also reported quarterly revenue of about 68.1 billion dollars, nearly doubling from a year earlier. Strong growth in its data center business, which supplies powerful processors used to train and run AI systems, remains the main driver of its performance.
Technology giants across the world are investing heavily in AI infrastructure, helping Nvidia maintain its dominant position in the industry. Its graphics processing units are widely used to power advanced AI models and cloud computing services.
Despite the strong results, Nvidia’s share price reaction remained subdued in after hours trading. Analysts said investor expectations were already very high after the company’s rapid growth over the past two years.
Investors are watching whether the pace of AI spending by large tech firms can be sustained. Some are also concerned about Nvidia’s reliance on a small number of major customers and rising competition from rivals and custom built chips developed by large cloud companies.
Geopolitical factors also remain important. United States export controls continue to restrict the company’s ability to sell advanced chips to China, although limited licenses have allowed some shipments. China remains a significant potential market if restrictions ease.
Nvidia said supply remains stable, even as shortages affect parts of the global semiconductor industry.
The company’s strong outlook has reinforced confidence in the global technology sector, with AI investment continuing to shape markets and business strategies worldwide.