Nvidia sets deep fear

The Nvidia provides for the highest revenue of the first quarter on Wednesday, signaling the constant strong demand for artificial intelligence chips, and said orders for its new Blackwell semiconductors were “amazing”.

The company’s forecast helps to deduct suspicions about a slowdown of spending on its device that appeared last month, after Chinese launch of it, Deepseek’s claims that it had developed models that rival Western counterparts with part of their cost.

The Nvidia’s view of the gross margin in the current quarter was slightly lower than expected, though, as the company Rampup Chip Blackwell weighs the Nvidia profit. The Nvidia forecast of the first quarter’s gross margin will sink to 71%, under the forecast of 72.2% by Wall Street, according to data compiled by LSEG.

Its shares progressed 1% in prolonged trading, as it closed 3.7% in regular trade. Nvidia is the biggest beneficiary of a rally in the shares associated with it, with its shares more than 400% over the last two years.

“The request for Blackwell is amazing,” Ceo Jensen Huang said in a statement. “We have successfully increased the massive production of Blackwell’s super -computers, reaching billions of dollars for sale in his first trimester.”

The caliph -based, caliph -based company generated $ 11 billion from the Blackwell -related products in the fourth quarter, which was approximately 50% of the total company’s data center, said Nvidia chief Colette Kress in its comment.

Kress said while Nvidia increases the production of its Blackwell chips, the company will reduce its costs and improve its boundaries, saying it will return among 70% of the interval later in the fiscal year.

The company expects revenue of $ 43 billion, plus or minus 2% for the first quarter, compared to the average estimate of analysts of $ 41.78 billion, according to LSEG.

“Despite the advances from Deepseek, the Nvidia moment with hyperscalers seems to continue,” said third bridge analyst Lucas Keh, referring to large computer companies.

Chinese companies are increasing orders for the H20 chip to Nvidia due to the blooming demand for the low -cost Deepseek model, Reuters reported on Monday.

The demand has increased for the advanced NVIDIA chips that can rapidly process the large amounts of data used by it, as companies compete with new technology leaders. The generator is a kind of artificial intelligence that can learn from data and improve over time.

John Belton, a portfolio manager at Nvidia Gabelli Funds, said the forecast “should be a positive reading of the request and investment of him”.

Large technology companies – among the largest Nvidia chip buyers – have remained sustainable in their prediction of large capital expenditures to expand it, despite investors’ concerns. Microsoft has set $ 80 billion for him in his current fiscal year, while Meta platforms have pledged up to $ 65 billion.

A recent brokerage report suggested that Microsoft has renounced considerable rents of the US Data Center, suggesting possible overs. But Reuters reported Monday that Chinese companies are increasing orders for the H20 chip to Nvidia due to the blooming demand for the low -cost deepseek model.

The Stargate Data Center project announced last month by President Trump will use Nvidia’s SPECTRUM X ETHERNET for networking, Kress said. Ethernet products are included in the company’s data center segment.

NVIDIA reported regulated profit per share of 89 cents, compared to 84 cents ratings. Revenue for the fourth quarter increased 78% to $ 39.3 billion, beating estimates of $ 38.04 billion.

Sales in the data center segment, which accounts for most of Nvidia’s income, increased 93% to $ 35.6 billion in the quarter completed on January 26, over $ 33.59 billion. The segment had recorded 112% in the previous quarter.