Nvidia gives upbeat revenue forecast, Applied Materials sees challenges

With tech firms venturing into the 'metaverse' and a spike in demand for data centers, revenue is surging for Nvidia, the world's largest maker of graphic and artificial intelligence chips

Chipmaker Nvidia Corp on Wednesday forecast current-quarter revenue above analysts' estimates, banking on strong demand for data centers.
 

But flat gross margins from the previous quarter and concern about Nvidia's exposure to the crypto market pushed shares down 2.8% in after-hours trading.

Nvidia expects first-quarter revenue of about $8.1 billion, compared with analysts' estimates of $7.29 billion, according to IBES data from Refinitiv. Data center revenue grew 71% to a record $3.26 billion in the fourth quarter.

Chief Executive Jensen Huang also told analysts on a call that business was constrained by supply but he expected that to improve.

With tech firms venturing