MarketWatch First Take: Nvidia’s jaw-dropping revenue forecast might not even be its peak

by | Aug 23, 2023 | Stock Market

Nvidia Corp. stunned Wall Street with Wednesday’s jaw-dropping forecast of $16 billion in revenue for the current quarter, and that may not even be the company’s top-line peak, as its decades of work in accelerated computing pay off in a big way. The company blew expectations out of the water with its latest results, thanks to a frenzy around artificial intelligence, which drove surging demand for Nvidia’s
data-center chips that help power artificial-intelligence applications. But what really pleased Wall Street was Nvidia’s forecast for $16 billion in revenue at the midpoint in the current quarter, a staggering projection that indicates the company is benefiting from a wave that shows no signs of easing.

Quarterly revenue of $16 billion would be almost double what had been the company’s top-line record prior to Wednesday’s report, and more astounding is that Nvidia might have the potential to top the $16 billion mark down the line. When asked if her guidance for revenue represented a peak for Nvidia, Chief Financial Officer Colette Kress would only say that the company is seeing “tremendous demand” and that it has visibility into very strong orders into 2024. “Going into fiscal 2024, we already have demand visibility … that takes us into the new calendar year as well,” Kress told MarketWatch in an interview. “We have tremendous demand and we will continue to ramp our supply into the next year.” To put the enormity of Nvidia’s forecast into perspective, total revenue for the full year that ended this January was $27 billion, and the company’s outlook implies it could rack up more than half that in the current quarter alone. As companies get serious about …

Article Attribution | Read More at Article Source

Share This