Nvidia, strong demand for new ai semiconductors - revenue outlook falls short of high expectations.

Part of the excerpt on November 21, 2024 at 11:02 JST
From November 2024 to January 2025, revenue is expected to reach about $37.5 billion, with the upper limit of market estimates at $41 billion.
"Blackwell" ships in the current quarter - production costs squeeze profit margins.

Major artificial intelligence (AI) semiconductor manufacturer nvidia indicated on the 20th that the company's AI-driven growth can be sustained with new product lines, but also suggested that costs are higher than expected.
Nvidia's CEO Jensen Huang stated after the quarterly earnings report that the eagerly anticipated next-generation AI semiconductor "Blackwell" has "very strong" demand and will be shipped in the current quarter. However, the costs of production and engineering are expected to squeeze profit margins, and the revenue outlook for the current quarter fell short of Wall Street's more optimistic expectations.
Investors' reaction to this was lukewarm, with the stock price temporarily dropping by about 2% in after-hours trading. The company's stock price had risen by nearly 200% since the beginning of the year before the earnings announcement, becoming the world's largest company by market capitalization. It was certain that without outstanding performance, disappointment would follow.

According to the announcement material, revenue for the period of November 2024 to January 2025 (Q4) is expected to be approximately $37.5 billion (about ¥5.83 trillion). The average analyst estimate compiled by Bloomberg was $37.1 billion, with some forecasts as high as $41 billion.