Episode summary
Instant Reaction: Nvidia’s Upbeat Sales Forecast Shows AI Boom Remains Strong | Bloomberg...
Bloomberg Daybreak: US Edition
· · 28 min · Hosts: Carol Massar, Tim Stenovec · Guests: Ed Ludlow, Jay Goldberg, Mandeep Singh, Anurag Rana
Summary
Nvidia’s latest report reinforced the view that AI infrastructure spending is still running hot. The company said fiscal first-quarter revenue should be about $78 billion, well above Street expectations, while fourth-quarter revenue rose 73% to $68.1 billion and data center sales reached $62.3 billion. The stock jumped in extended trading as commentators pointed to the outlook, strong demand, and another quarter of gross margin resilience at 75.2%.
Analysts said the guide suggests customers are still racing to secure compute, not pulling back from it. One analyst argued that the quarter confirms Nvidia can keep selling more of the full system, not just chips, and that its pricing power is holding even as memory costs rise elsewhere in the industry. Another noted that the first-quarter outlook does not assume any compute revenue from China, though Nvidia separately said it secured a license to ship small amounts of H200 chips to China for specific customers.
The conversation broadened into the rest of AI as well. Salesforce shares fell after its outlook, and a Bloomberg Intelligence analyst said software companies are getting squeezed both by AI spending shifts and by fears that model providers could disrupt legacy enterprise tools. That contrast framed Nvidia as the clearest beneficiary of current AI capex, while software names face a tougher narrative.
Key takeaways
- Nvidia guided fiscal first-quarter revenue to about $78 billion, far above the Street’s $72.8 billion estimate, and shares rose after hours.
- A Bloomberg analyst said the quarter shows demand is still accelerating, not slowing, with AI compute spend continuing to rise across hyperscalers.
- Gross margin came in at 75.2%, and analysts said Nvidia appears able to pass through higher memory costs to customers.
- The outlook did not include any compute revenue from China, even as Nvidia said it secured a license to ship small amounts of H200 chips there.
- Bloomberg Intelligence said Salesforce and other software names are under pressure from both shifting AI budgets and disruption fears.
Notable quotes
“the company saying for the first quarter sees revenue of 76.44 billion to 79.56 billion”
“Nvidia saying computing demand is growing exponentially”
“Nvidia says it's secured supply to meet demand for several quarters”
“they are selling you know to existing customers not just GPUs but systems”
“we are very early in the inning but at the same time you know when people are worried they'll entirely sell the entire sector”
How the episode opens
The news doesn't stop on the weekends. — Context changes constantly. And now Bloomberg is the place to stay on top of it all. — Hi, I'm David Gura. Join us every Saturday and Sunday for the new Bloomberg This Weekend. — I'm Christina Rafini. We'll bring you the latest headlines, in-depth analysis, and big interviews. All the stories that hit home on your days off. And I'm Lisa Matteo. Watch and listen to Bloomberg this weekend for thoughtful, enlightening conversations about business, lifestyle, people, and culture. On Saturday mornings, we put the past week's events into context, examining what happened in the markets and the world.
Then on Sundays, we speak with journalists, columnists, and key political figures to prepare you for the week ahead. Join us as soon as you wake up and bring us with you wherever your weekend plans take you. — Watch us on Bloomberg television. Listen on Bloomberg Radio, stream the show live on the Bloomberg business app, or listen to the podcast. That's Bloomberg this weekend, Saturdays and Sundays starting at 7 a.m. Eastern on February 28th. Make us part of your weekend routine on Bloomberg television, radio, and wherever you get your podcasts.
Bloomberg Audio Studios, podcasts, radio, news. This is a breaking news update from Bloomberg. Instant reaction and analysis from our 3,000 journalists and analysts around the world. — Let's go to actually the outlook. First quarter revenue forecast beating estimates. Uh the company saying for the first quarter sees revenue of 76.44 billion to 79.56 billion. That is easily above the street estimate of 72.78 million. Let's go back to the fourth quarter. data center revenue that coming in better than expected 62.3 billion versus the street estimate of 60.36 billion. Uh Nvidia saying computing demand is growing exponentially.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- nvidia upbeat sales forecast
- ai compute demand
- semiconductor outlook
- extended trading stock move
- ai investment bubble concerns
Companies and tickers mentioned
- NVDA
- Nvidia
- Seaport Research Partners
- Bloomberg Intelligence
Watch the episode
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
More from Bloomberg Daybreak: US Edition
-
Nvidia Faces Post-Huang Reckoning, Microsoft Races to Fix Outage | Bloomberg Daybreak: US Edition -
Daybreak Weekend: Nvidia Earnings, UK Labour Market, APEC Summit | Bloomberg Daybreak: US Edition -
Nvidia Weighs Succession Plans; Congress Preparing to Subpoena Jensen Huang | Bloomberg... -
GOP Thwarts Hegseth Impeachment; CoreWeave Quiets Doubts | Bloomberg Daybreak: US Edition -
FBI Investigates Nvidia CEO, Anthropic IPO Snafu | Bloomberg Daybreak: US Edition -
Nvidia CEO Affair Sparks Probe, Trump Admits Policy Mistake | Bloomberg Daybreak: US Edition
Bloomberg Daybreak: US Edition, this episode and its artwork belong to Bloomberg. Octagon is not affiliated with the show; this page is an independent summary.
