Nvidia’s Estimate-Topping Forecast Fails to Impress Investors

Nvidia Corp. delivered a sales forecast that left some investors underwhelmed, adding to concerns about the momentum of AI spending.

Revenue in the current period will be $108 billion, plus or minus 2%, the company said in a statement Wednesday. Though analysts had estimated $105.2 billion on average, some projections exceeded $110 billion, according to data compiled by Bloomberg. Gross margin, the percentage of sales remaining after deducting the cost of production, will be roughly 74%.

Shares of the company fell about 2% in late trading after the report was released.

The tepid reaction underscores the growing skepticism around the artificial intelligence boom. After years of runaway growth, some investors have become concerned about a potential bubble. Nvidia’s myriad investment pacts with companies in the AI economy also have sparked fears that circular deals will leave the industry on shakier ground.

Nvidia, the world’s most valuable company, is the leading provider of AI accelerators, a key component for training and running artificial intelligence models. That status has turned its quarterly earnings into a barometer on the state of the broader industry.