A new generation of gaming chips, along with heavy demand for a wide range of digital services during the coronavirus pandemic, lifted Nvidia’s revenue and earnings above expectations in the latest quarter.
But shares in the US chipmaker slipped about 3 per cent during an earnings call late on Wednesday as investors sorted through a complex outlook that revealed the company was fighting against a number of headwinds even as it was lifted by strong secular forces like the rise of AI.
Factors affecting Nvidia’s outlook included a large order of networking gear from a Chinese customer — believed to be Huawei — that was pulled forward into the latest quarter. While that boosted the figures, it also meant that sales from that part of the business were likely to fall on a sequential basis in the current quarter, the company said.