Nvidia’s Forecast Magic Fades as Analysts Catch Up to Reality
- More difficult for AI giant to impress after knockout quarters
- Sales forecast didn’t match more optimistic projections
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Nvidia Corp.’s estimate-beating results would be the envy of most companies, but after a more than 800% share-price gain in two years, great is no longer good enough for Wall Street.
The main sticking point was the revenue forecast for the current quarter, which exceeded the analyst estimate by a mere $400 million. It marked the second-consecutive period that Nvidia’s quarterly sales projection didn’t top the average analyst estimate by $1 billion or more, suggesting that the hyper growth that has fueled its rally is rapidly fading.