Nvidiaforecasts quarterly revenue above estimates, shares rise

Nvidia’s quarterly revenue more than doubled and the chipmaker forecast third-quarter revenue above Wall Street estimates on Wednesday, signaling persistent demand for its AI chips.The company also said it expects revenue to grow by about 70% in fiscal 2028, and announced an expansion of its partnership with Amazon’s cloud computing unit, Amazon Web Services.The pair will deploy an additional 2 million Nvidia GPUs across Amazon’s global infrastructure in 2027 and 2028, Nvidia finance chief Colette Kress said on an earnings call.Shares of the company reversed course in after-hours trading to jump more than 4%, as investors cheered Nvidia’s road map for growth.As of Wednesday’s close, Nvidia shares have gained 12.4% so far this year, while AMD and Intel have more than doubled.Results from Nvidia, one of the world’s most valuable firms, are considered a bellwether for the AI market as its chips power most of the major data centers and advanced AI models globally.The report comes weeks after companies including Microsoft and Meta — two of Nvidia’s biggest customers — reinforced expectations that Big Tech would spend more than $730 billion on AI infrastructure this year, an unprecedented sum that marks a big step up from last year’s $400 billion outlay.An increasing share of tech companies’ slated spending, however, is now going toward in-house chip efforts that aim to reduce their reliance on Nvidia’s costly and supply-constrained processors.There is also mounting scrutiny of Nvidia’s role in the AI boom’s complex financing ecosystem after the company agreed to guarantee some deals under a new tie-up with six major financial institutions, which aims to raise more than $500 billion for AI infrastructure.The company’s margins are closely watched as analysts expect them to be pressured by the production ramp for its Rubin chips and higher memory prices plaguing the silicon supply chain.Nvidia expects adjusted gross margin to...