Nvidia reported quarterly results that beat analysts estimates while projecting robust sales, yet nvda stock slipped about 1% in late trading as some investors stayed cautious.
The Santa Clara chipmaker said sales for the three months ended April 26 rose 85% to $81.6 billion, above the $79.2 billion average forecast reported by analysts, and adjusted profit excluding certain items climbed to $1.87 a share, beating a $1.77 projection.
Adjusted gross margin stood at 75% as Nvidia said its data center unit generated $75.2 billion in revenue, topping a $73.5 billion estimate, and networking within that unit delivered $14.8 billion, above a $12.7 billion forecast.
For the quarter ending in July the company forecast about $91 billion in sales, exceeding an average analyst estimate of $87 billion though some projections reached $96 billion, and management said it expects roughly $20 billion in CPU revenue this year.
Nvidia significantly expanded shareholder returns, raising its quarterly dividend to 25 cents from a penny and authorizing $80 billion in stock repurchases, moves that did not fully satisfy investors despite the stronger-than-expected results.
Chief Executive Officer Jensen Huang said the company is broadening its customer base beyond the large cloud buyers known as hyperscalers and argued Nvidia is preparing for new markets including robotics and automated vehicles, adding "We've got it all covered," and saying, as reported, "The build-out of AI factories the largest infrastructure expansion in human history is accelerating at extraordinary speed."
Market Reaction Competition And Geopolitical Limits
Investors have grown more skeptical as rivals and customers chip away at Nvidia's advantage, with Advanced Micro Devices, Broadcom and Alphabet pursuing competing AI computing products, and some major buyers moving to build in-house components.
The company remains the top seller of AI accelerators and is estimated to account for more than a third of semiconductor sales this year, yet executives acknowledged growing competition and said they have more orders than supply can fill.
Hyperscalers continue to drive demand, planning a combined roughly $725 billion in AI spending this year, and that continued momentum is lifting related CPU sales for other chipmakers, the company said.
On international limits Nvidia said US export rules have constrained its growth in China by restricting sales of AI accelerators, with only older products recently allowed for sale under changing policy, and Nvidia reported it is still not receiving any data center revenue from China.
