Nvidia Bets on Vera for Next Growth Wave – Yahoo Finance
This article first appeared on GuruFocus.
Nvidia (NVDA, Financials) gave investors another strong sales outlook, but the stock slipped after hours as Wall Street looked past the beat and focused on tougher competition.
The company forecast second-quarter revenue of about $91 billion, above analysts’ estimate of $86.84 billion. First-quarter revenue reached $81.62 billion, also ahead of expectations, while adjusted earnings came in at $1.87 per share.
Data center revenue remained the engine of the business, rising to $75.2 billion. Demand is being fueled by large cloud companies and newer AI-focused cloud providers.
CEO Jensen Huang also pointed to Nvidia’s Vera central processor as a new growth driver. He said Vera gives the company access to a $200 billion market and could generate $20 billion in sales this fiscal year.
Still, investors are watching rising competition from custom chips built by major tech companies, along with pressure from AMD and Intel.
The next test is whether Nvidia can keep expanding supply and defend its AI lead as customers spend heavily but look for cheaper alternatives.
