Nvidia, the world’s most valuable company, delivered a sales forecast that drew a tepid reaction from investors, even as revenue from data center operators continued to surge.
Sales in the three months ending in July will be $91 billion, the company said in a statement late Wednesday. Though analysts estimated $87 billion on average, projections ranged as high as $96 billion, according to data compiled by Bloomberg.
Nvidia also dialed up its shareholder rewards, with the company increasing its quarterly dividend to 25 cents a share from a penny. And the company announced $80 billion in stock repurchases.
The outlook let down investors who have grown accustomed to Nvidia shattering expectations. The company also is facing the first major challenges to its dominance in AI computing, with a variety of chipmakers trying to carve out of a piece of the business.
Nvidia shares fell less than 1% in late trading after the results, from the company’s first quarter, were released. They had gained 20% this year, a performance that outpaced the S&P 500 but lagged most major chip peers.
