"Nvidia has forecast fourth-quarter revenue above Wall Street estimates and is betting on booming demand for its AI chips from cloud providers even as widespread concerns of an artificial intelligence bubble grow stronger. The world's most valuable company expects fourth-quarter sales of $65bn, plus or minus 2 percent, compared with analysts' average estimate of $61.66bn, according to data compiled by LSEG."
"The results from the AI chip leader mark a defining moment for Wall Street as global markets look to the chip designer to determine whether investing billions of dollars in AI infrastructure expansion has resulted in towering valuations that potentially outpace fundamentals. The AI ecosystem is scaling fast with more new foundation model makers, more AI start-ups across more industries and in more countries. AI is going everywhere, doing everything, all at once, Nvidia CEO Jensen Huang said in a statement."
Nvidia forecast fourth-quarter sales of $65 billion, above analysts' $61.66 billion estimate, and is relying on strong demand for its AI chips from cloud providers. Data-center sales grew to $51.2 billion for the quarter ending Oct. 26, beating expectations. The AI ecosystem is rapidly expanding with more foundation model makers and AI startups across industries and countries, fueling massive GPU demand. Concerns include a potential AI valuation bubble, hyperscalers' ability to deploy capacity quickly, and physical bottlenecks in power, land, and grid access. Nvidia's revenue concentration rose, with four customers accounting for 61 percent of sales.
Read at www.aljazeera.com
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