Chipmaker Nvidia Corp on Wednesday forecast current-quarter revenue above analysts’ estimates, banking on the demand for data centers.
Nvidia expects first-quarter revenue of $8.1 billion, compared with analysts’ estimates of $7.29 billion, according to IBES data from Refinitiv.
“We are seeing exceptional demand for NVIDIA computing platforms,” Chief Executive Jensen Huang said in a statement. Data center revenue grew 71% to $3.26 billion in the quarter.
Nvidia shares were down 1% in after-hours trading.
Meanwhile, supplier to chip makers Applied Materials Inc posted record quarterly revenue on Wednesday, driven by robust demand for its semiconductor-making equipment from customers including Samsung Electronics and Taiwan Semiconductor Manufacturing Company.
However, Applied Materials’ chief executive, Gary Dickerson, said the supply environment remains challenging and that the company is doing everything it can to deliver for customers. The company expected second-quarter revenue of $6.35 billion, marginally below analysts’ estimates, according to Refinitiv data.
With tech firms venturing into the “metaverse” and a spike in demand for data centers, revenue is surging for Nvidia, the world’s largest maker of graphic and artificial intelligence chips, and for other chip makers.
Nvidia’s net income rose to about $3 billion in the fourth quarter from $2.46 billion a year earlier.
The results come on the heels of SoftBank Group Corp’s collapsed deal to sell chip designer Arm to Nvidia. Worth up to $50 billion at current market prices, it would have been the largest chip deal ever.
Nvidia reported fourth-quarter revenue of $7.64 billion, compared with estimates of $7.42 billion.
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