Nvidia's Revenue Forecast Misses High Expectations, Stock Drops

Nvidia, the world's highest-valued listed company, has issued a lackluster revenue forecast for the current quarter, sparking concerns that the rapid growth in artificial intelligence spending may be slowing down. The company announced that its sales for the third fiscal quarter, ending in October, are expected to reach approximately 540 100 million. This forecast aligns with the average estimate from Wall Street but falls short of some analysts' expectations, which had projected figures exceeding 600 100 million.

The company's subdued outlook has intensified worries about the sustainability of investments in AI systems. The market's challenges are also casting a shadow over Nvidia's business operations. Despite recent relaxations by the Trump administration on the export of certain AI chips, these changes have yet to translate into a revenue rebound for the company.

Following the earnings release, Nvidia's stock price experienced a post-market decline. Year-to-date, the company's stock has surged by 35%, with its market value exceeding 400 billion. Nvidia continues to grapple with intensifying competition, with technology remaining a focal point. In April, the Trump administration tightened restrictions on the export of data center processors, effectively excluding Nvidia from this market. Washington later reversed this decision, allowing Nvidia to export certain products to China but imposing a 15% revenue share on these sales.