Nigeria TV Info report:
Nvidia Beats Profit Forecasts But Shares Dip on China Woes, AI Spending Fears
CALIFORNIA — AI chipmaker Nvidia on Wednesday reported earnings that surpassed Wall Street expectations, posting a record profit of $26.4 billion on revenue of $46.7 billion for the latest quarter, fueled by surging global demand for artificial intelligence datacenter chips.
The strong results reflect tech giants' rush to acquire Nvidia's powerful graphics processing units (GPUs), which remain the backbone of AI computing worldwide.
However, despite the blockbuster numbers, Nvidia's shares slipped in after-hours trading. Investors expressed concerns about a possible bubble in AI chip spending and the company's faltering operations in China, where US export restrictions have curbed sales.
Notably, revenue from Nvidia's Data Center compute products — including its most sought-after GPUs — edged down 1 percent compared to the previous quarter, raising questions about whether demand growth is slowing.
Industry analysts say Nvidia remains the undisputed leader in AI hardware, but challenges in China and fears of overheating investments in AI infrastructure continue to weigh on investor sentiment.
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