Nvidia CEO Jensen Huang predicts a strong fourth quarter, citing the company’s dominance in the global artificial intelligence boom. Third-quarter sales rose 62%, marking the first acceleration in seven quarters. Huang expects the momentum to carry into the next quarter and believes the company is leading a transformation in computing.
The company’s shares jumped 5% in extended trading after stronger-than-expected earnings, calming investor nerves over concerns about an AI bubble. Nvidia forecasts $65 billion in sales for the fourth quarter, plus or minus 2%, compared to analysts’ average estimate of $61.66 billion.
Huang addressed concerns about potential investments in companies like OpenAI, saying they do not depend on Nvidia’s investment. He also reiterated a forecast that the company had $500 billion in bookings for its advanced chips through 2026.
Nvidia’s strong earnings and fourth-quarter forecast have pushed up shares of rival AMD, tech giants Alphabet and Microsoft, and funds tracking the S&P 500 index. The company’s shares have advanced 35% this year, outpacing the 13% rise in the S&P 500.
Source: https://www.foxbusiness.com/markets/nvidia-ceo-predicts-crazy-good-q4-strong-earnings-calm-ai-bubble-fears