Nvidia's Forecast Sparks AI Fears

Nvidia's recent revenue forecast has underperformed, leading to concerns about a potential slowdown in AI spending. The projection of approximately $54 billion for the fiscal third quarter, while aligning with average Wall Street estimates, fell short of some analysts' expectations of over $60 billion.

Despite robust demand for AI chips from cloud providers, Nvidia's forecast signals a possible deceleration in the hyper-growth previously anticipated. The company's shares experienced a dip in extended trading following the report.

Nvidia's performance is closely tied to the overall AI market, with significant revenue derived from large cloud service providers. The tepid forecast raises questions about sustaining future revenue expectations, particularly amid ongoing trade dynamics.