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Nvidia Corp., the world’s most valuable company, gave another bullish quarterly revenue forecast, signaling that the massive build-out of AI computing remains on track.
Fiscal first-quarter sales will be about $78 billion, the chipmaker said in a statement Wednesday. That compares with an average Wall Street estimate of $72.8 billion, according to data compiled by Bloomberg.
“Our customers are racing to invest in AI compute — the factories powering the AI industrial revolution and their future growth,” Chief Executive Officer Jensen Huang said in the statement.
The outlook helped soothe concerns about a bubble in AI investments. Huang has repeatedly downplayed fears that the run-up in spending on artificial intelligence hardware isn’t sustainable. He argues that it will take years to replace the world’s installed base of older computers with machines that offer a leap forward in productivity.
But some investors had grown weary of that optimism and traded out of stocks like Nvidia. Wednesday’s report provides some evidence that near-term worries may be overblown.
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