Nvidia beats revenue estimates but shares slip on AI outlook

Nvidia reported quarterly revenue exceeding Wall Street estimates on Wednesday, but its outlook did little to ease investor concerns about its long-term dominance in the AI chip market. Shares of the world's most valuable company fell 1.2% in extended trading. The company forecast third-quarter revenue of $108.0 billion, plus or minus 2%, surpassing the average analyst estimate of $104.19 billion, according to LSEG data. Nvidia said its forecast excluded any sales of data center chips to China. Nvidia's results are seen as a key indicator of the AI market, as its chips power most major data centers and advanced AI models globally. The report follows recent announcements from major clients Microsoft and Meta, indicating tech giants would spend over $730 billion on AI infrastructure this year, up from $400 billion last year.