NVIDIA's performance soars again, but concerns arise

Source: Content compiled from Bloomberg and Semiconductor Industry Observer. NVIDIA predicted on Wednesday that its fourth-quarter revenue would slightly exceed expectations, but still fell short of some investors' high hopes, which have made it the world's most valuable company. The company, headquartered in Santa Clara, California, saw its stock price drop about 3.6% in pre-market trading. During regular trading hours, the company's stock closed down 0.8%. NVIDIA is set to launch its powerful Blackwell series of artificial intelligence chips, which will initially impact the company's gross margin but is expected to improve over time. NVIDIA's Chief Financial Officer Colette Kress told analysts during Wednesday's conference call that the new series of processors has been well received by NVIDIA's customers, and the company's processor sales for the fourth quarter will exceed the initially expected billions of dollars. CEO Jensen Huang stated, "The number of Blackwell units we deliver this quarter will exceed previous expectations." Kress noted that the gross margin for the new chip production line will initially be below 70%, but will rise to around 70% as production increases. According to data compiled by the London Stock Exchange, the company expects fourth-quarter revenue to be $37.5 billion, with a fluctuation of 2%, while the average analyst expectation is $37.09 billion, with the forecast reaching as high as $41 billion