Nvidia shares dip as forecast fails to calm overspending fears




Nvidia's shares edged lower on Thursday as the AI leader's optimistic quarterly forecast failed to quell concerns about overspending in the industry.

The stock dropped 0.7% to $130.32 in early premarket trading, following a 1.5% decline in after-hours trading on Wednesday.

Despite a strong growth outlook for the first quarter, indicating sustained demand for its AI chips, Nvidia also reported "amazing" orders for its new Blackwell semiconductors.

However, the company expects its first-quarter gross margin to decrease to around 71%, down from 73.5% and below the 72.2% analysts had projected, according to data from LSEG.

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