Instant Reaction: Nvidia’s Upbeat Sales Forecast Shows AI Boom Remains Strong
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Let's go to actually the outlook. First quarter revenue forecast beating estimates. The company saying for the first quarter sees revenue of $76.44 billion to $79.56 billion. That is easily above the street estimate of $72.78 million. Let's go back to the fourth quarter data center revenue. That coming in better than expected. $62.3 billion versus the street estimate of $60.36 billion. NVIDIA saying computing demand is growing exponentially. Fourth quarter adjusted gross margin, we expected 75%. We got 75.2%. Fourth quarter revenue coming in overall, $68.1 billion, better than the street estimate of $65.91 billion. Tim, we're seeing that stock up now about 2.2% in the aftermarket.
Yeah, just to remind everybody where we are with these numbers, the company sees first quarter revenue coming in $76.44 billion to $79.56 billion. That beat estimates handily of $72.78 billion. As Carol mentioned, NVIDIA CEO Jensen Wong saying in a statement, computing demand is growing exponentially. We also, fourth quarter data center revenue worth repeating a beat there, $62.3 billion. The estimate is for $60.36 billion. And that gross margin coming in above estimates at 75.2%.
Our Sarah Fryer on our live blog saying that shares are growing up on that data center revenue beat. Hey, Ed Ludlow, come on in. I know you're looking at these numbers. What jumps out for you?
Yeah, I mean, straight to the outlook. And by the way, I would have done the same thing. Go right there. You know, revenue in the fiscal first quarter, $78 billion, plus or minus 2%. You know, a consensus was really high. But like going into this, it's a very simple equation. There were many names from across sell side and buy side that said they wanted to see NVIDIA beat NVIDIA. revenues overall in the current period by the multiple billions of dollars against consensus. And so one thing I would say to confirm something is that the fiscal first quarter, which is the April quarter, does not assume any compute revenue from China in the outlook, does not factor in any compute revenue of China. That, I guess, is something to check off the list.
It was one of the questions we had.
I want to bring in Jay Goldberg from Seaport Research Partners. He's senior analyst for semiconductors and electronics. He joins us also from San Francisco. Jay, anything in here that confirms your thesis or does it sort of go against the cell rating that you have on Nvidia?
Yeah, I mean, it goes, I mean, it's a good quarter. It's a good quarter and a good guide. It's above consensus, it's above my expectations, but good for them. We're still waiting to see a lot more detail. What do you want to see? I want to see I want to hear more of a talk about gross margin for next quarter.
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