Nvidia’s strong growth forecast for the first quarter on Wednesday signalled that booming demand for its artificial intelligence (AI) chips was intact, and the company said orders for its new Blackwell semiconductors were “amazing.”
The company’s forecast helps allay doubts about a slowdown in spending on its hardware that emerged last month, following Chinese AI start-up DeepSeek’s claims that it had developed AI models rivalling Western counterparts at a fraction of their cost.
Its shares rose, before declining slightly in choppy extended trading, after closing up 3.7 per cent in regular trading. Nvidia is the biggest beneficiary of a rally in AI-linked stocks, with its shares up more than 400 per cent over the last two years.
CEO Jensen Huang struck an optimistic note saying “AI is advancing at light speed”, and that “demand for Blackwell is amazing”, in commentary that should bode well for AI-related stocks that have taken a hit in the past week. “We’ve successfully ramped up the massive-scale production of Blackwell AI supercomputers, achieving billions of dollars in sales in its first quarter,” he said.
Nvidia is undergoing a critical product transition as it moves to a new chip architecture called Blackwell, shifting from selling individual chips to full AI computing systems that integrate graphic chips, processors and networking equipment.
Source link
