Quick overview

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NVIDIA did not impress investors with its most recent sales projection, indicating that the company will continue to be plagued by worries about an overheated AI economy.

NVIDIA shares dropped as much as 1.5 percent during a conference call with analysts despite the chipmaker’s first-quarter outlook easily exceeding the average Wall Street estimate.

Not much had changed in the stock by Wednesday night,

The skepticism surrounding Nvidia is now a stark reminder. The chipmaker’s explosive sales growth made it the world’s most valuable company, and CEO Jensen Huang pushed back on concerns during Wednesday’s call, arguing that customers are already making money from their newly acquired computing power. Investors are seeking stronger assurances that booming

AI sales are still possible. Huang said that “you need compute capacity, and that translates directly to growth, and that translates directly to revenues,” which is why clients will keep investing at elevated levels.

Chief Financial Officer Colette Kress tried to defuse other issues raised by analysts, such as the specter of supply constraints, by saying, “I’m confident their cash flows are growing.” She told analysts that producing enough of Nvidia’s most advanced chips is still a challenge, but the company has secured enough components to be able to meet growing demand.

However, Kress said that the company’s current Blackwell lineup—and a new successor, Rubin—will still beat sales projections from the past.

NVIDIA previously stated that by the end of 2026, the chips would generate $500 billion.