Nvidia’s New Chip to Ship This Quarter, Costs to Squeeze Margins
Nvidia Corp. assured investors on Wednesday that its new product lineup will continue to fuel an artificial intelligence-driven growth run, while also signaling that the rush to get chips out the door is proving costlier than expected.
Bloomberg chart-Nvidia
Speaking after the release of quarterly results, Chief Executive Officer Jensen Huang said that Nvidia’s highly anticipated Blackwell products will ship this quarter amid “very strong” demand.
But the production and engineering costs of the chips will weigh on profit margins, and Nvidia’s sales forecast for the current period didn’t match some of Wall Street’s more optimistic projections.
That brought a tepid reaction from investors, who had bid up Nvidia shares almost 200% this year heading into the earnings report. After that dizzying rally, which turned the chipmaker into the world’s most valuable company, anything but a blowout quarter was bound to be a disappointment. The shares fell about 2.3% at 10:24 a.m. in New York on Thursday
