Chipmaker Nvidia posted better-than-expected results for the January quarter on Wednesday and forecast current-quarter revenue above market estimates, betting on Big Tech\u2019s unabated spending on \u200cits artificial-intelligence processors.<\/p>\n
But its stock traded flat after hours, as investors, used to solid revenue beats from the company for 14 straight quarters, were likely disappointed by the uneventful results that were released 10 minutes after the expected time.<\/p>\n
On the \u200bpost-earnings conference call, UBS analyst Tim Arcuri asked executives whether Nvidia was looking to give back to shareholders some of the $100 billion cash it was likely to generate this year, because \u201cno matter how good the results have been, the stock hasn\u2019t really gone up much\u201d. In response, Nvidia chief financial officer Colette Kress said the company wanted to keep investing in the AI ecosystem.<\/p>\n
Chief executive Jensen Huang said the output generated by AI models would be the foundation \u200bof future computing and Nvidia would keep building more infrastructure to support that. \u201cThis new way of doing computing is not going to go back,\u201d he said.<\/p>\n
Seeking to alleviate concerns that a supply crunch at its chip contract maker TSMC \u2060was getting in the way of its growth, Nvidia said it had secured enough chip inventory and capacity to meet demand beyond the next several quarters. The shortage, though, \u200cwill \u200caffect \u200bits gaming business, the company said.<\/p>\n
The world\u2019s most valuable company expects fiscal first-quarter sales of $78 billion, plus or minus 2 per cent, compared with analysts\u2019 average estimate of $72.60 billion, according to data compiled by LSEG.<\/p>\n
\u201cThis was a good beat and raise, the usual for Nvidia, but based on the reactions \u2060preliminarily, it seems a lot was baked in to the cake so far,\u201d \u200bsaid Ken Mahoney, CEO at Mahoney Asset Management, which holds shares of Nvidia.<\/p>\n
The fourth-quarter \u200bresults are good news for AI investors, who are looking to Nvidia\u2019s performance to gauge whether the hundreds of billions of dollars that Big Tech is pouring into data center infrastructure are paying \u200coff. Hyperscalers including Meta Platforms – a big Nvidia customer – have forecast total capital \u200bexpenditure of at least $630 billion in 2026, with most of the spending earmarked for data centres and processors.<\/p>\n
\u201cIt\u2019s clear from Nvidia\u2019s latest numbers and their forecast that concerns about an \u2060AI slowdown simply are not showing up yet,\u201d said Bob O\u2019Donnell, chief analyst \u2060at TECHnalysis Research. Still, there are signs of risk \u200bto Nvidia\u2019s long-held dominance in making AI chips. Smaller rival AMD is set to unveil a new flagship AI server later this year and has clinched deals with Nvidia\u2019s top customers, including Meta. Alphabet\u2019s Google, meanwhile, has emerged as a top rival with a deal to provide Claude chatbot creator Anthropic with its in-house chips called TPUs. Google is also in talks to supply Meta, according to media reports.<\/p>\n
Big Tech is increasingly turning inward in the quest for more computing power, dedicating resources to designing in-house chips that they are deploying in their data centres.<\/p>\n
Nvidia\u2019s sales concentration among a few key customers crept up during its just-ended fiscal 2026, with two customers making up 36 per cent of sales. During the previous fiscal year, three customers made up 34 per cent of sales.<\/p>\n
Nvidia reported January-quarter sales rose 94 per cent to $68.13 billion, beating estimates of $66.21 billion. \u200cAdjusted profit came in at $1.62 per share, compared \u2060with estimates of $1.53, according to LSEG data.<\/p>\n
Nvidia said its forecast for the current quarter did not include any expected revenue from sales of its data-centre chips to China. However, the company said it had received licenses this month from the US government to ship \u201csmall amounts\u201d of its H200 chips to customers in China. These \u200csales had been restricted due to export curbs placed by the US government.<\/p>\n
Rival AMD has added sales of AI chips back to its forecast for the current quarter after it received licenses to ship some of its modified \u200bprocessors to China.<\/p>\n
Nvidia also said it will include stock-based compensation expense in its non-GAAP financial measures at a time when tech firms \u200bare fighting each other for top AI engineers and researchers.<\/p>\n
\u201cStock-based compensation is a foundational component of Nvidia\u2019s compensation program to attract and retain world-class talent,\u201d the company said in a statement. – Reuters<\/p>\n","protected":false},"excerpt":{"rendered":"Chipmaker Nvidia posted better-than-expected results for the January quarter on Wednesday and forecast current-quarter revenue above market estimates,…\n","protected":false},"author":2,"featured_media":321648,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[220,218,219,61,60,14742,233,80],"class_list":["post-321647","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-ie","tag-ireland","tag-jensen-huang","tag-nvidia","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/321647","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=321647"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/321647\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/321648"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=321647"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=321647"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=321647"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}