"The results from the AI chip leader mark a defining moment for Wall Street, as global markets looked to the chip designer to determine if investing billions of dollars in AI infrastructure expansion had resulted in towering valuations that potentially outpaced fundamentals. The world's most valuable company expects fiscal fourth-quarter sales of $65 billion, plus or minus 2%, compared with analysts' average estimate of $61.66 billion, according to data compiled by the London Stock Exchange Group (LSEG)."
"Nvidia CEO Jensen Huang said last month the company has $500 billion in bookings for its advanced chips through 2026. Big Tech, among Nvidia's largest customers, has doubled down on spending to expand AI data centers and snatch the most advanced, pricey chips as it commits to multi-billion, multi-gigawatt build outs. Microsoft reported a record capital expenditure of nearly $35 billion for its fiscal first quarter last month, with roughly half of it spent primarily on chips."
Nvidia projected fiscal fourth-quarter sales of $65 billion, plus or minus 2%, above analysts' estimate of $61.66 billion. The company expects an adjusted gross margin of roughly 75%, plus or minus 50 basis points, compared with market expectations of 74.5%. Shares rose more than 4% in after-hours trading after earlier November weakness. Nvidia reported $500 billion in bookings for advanced chips through 2026. Major cloud and Big Tech customers are accelerating AI data center builds and spending on high-end chips. Microsoft recorded nearly $35 billion in capex, with roughly half attributed to chips.
Read at Fast Company
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