Nvidia reported first-quarter revenue up 85% year over year to $81.6bn and net income more than tripled to $58.3bn. Shares fell 1.6% in after-hours trading despite the strong results. Sales were driven by growth in the data center division, reflecting continued demand for AI infrastructure chips used by major AI model developers. Nvidia forecast annual AI infrastructure spending of $3tn to $4tn by the end of the decade. The company said demand has become extremely strong and linked it to the arrival of agentic AI. Some investors appeared less excited because expectations are already very high and competition concerns are growing.
"Nvidia is a central player in AI infrastructure, providing chips to leading AI model developers including OpenAI and Meta, meaning its results are closely watched. The company reported first-quarter revenue was up 85% on the year to $81.6bn (60.7bn), while net income more than tripled to $58.3bn. However, shares in the company fell 1.6% in after-hours trading with analysts saying investors have got used to Nvidia delivering stellar results and amid some concerns that the firm will face growing competition."
"In its latest results, it said sales were driven by strong growth in its data centre division. It forecasts spending on AI infrastructure to be between $3tn and $4tn a year by the end of this decade. "Demand has gone parabolic," chief executive Jensen Huang told analysts on a conference call. "The reason is simple: the era of agentic AI is here.""
"But its shares fell in extended trading, which Ruth Foxe-Blader, managing partner at US venture capital firm Citrine Venture Partners, put down to "a law of large numbers". "Nvidia represents 8% of the S&P 500. Unless there's a belief in this continued parabolic growth it's difficult for investors to get super excited, although Nvidia posted outstanding numbers," she told the BBC. "But it's just investors seeking that hypergrowth, which is indicating an early sell-off.""
"Victoria Scholar, head of investment at interactive investor, agreed that while it was a strong quarter for the company, "the bar is very high for the artificial intelligence bellwether which has made a habit out of delivering incredibly impressive results. "Plus investors 'bought the "
Read at www.bbc.com
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