(Reuters) -Nvidia forecast third-quarter revenue above Wall Street estimates on Wednesday that still failed to impress investors who have driven a dizzying rally in its shares as they bet billions on the future of generative artificial intelligence.
Shares of the Santa Clara, California-based company fell 2%in extended trading. Nvidia’s stock has more than doubled in value so far this year.
Investors had lofty expectations from the chipmaker, following a more than seven-fold surge in Nvidia’s shares over the last two years – making it one of the biggest beneficiaries of a rally in AI-linked shares.
The company’s capacity to surpass estimates faces increasingly greater challenges as each success prompts Wall Street to raise their targets even higher.
The company forecast revenue of $32.5 billion, plus or minus 2%, for the third quarter, compared with analysts’ average estimate of $31.77 billion, according to LSEG data.
The company said it expects several billion dollars in revenue from its latest Blackwell chips in the fourth quarter, addressing wide-spread concerns of reported production delays hampering growth.
Nvidia reported second-quarter revenue of $30.04 billion, beating estimates of $28.70 billion.
(Reporting by Arsheeya Bajwa in Bengaluru; Editing by Arun Koyyur)