Nvidia forecasts upbeat revenue on metaverse hopes

Nvidia Corp forecast fourth-quarter revenue above analysts’ expectations on Wednesday, betting on growth in its data center business as more internet companies set out to invest in artificial intelligence and the metaverse.

The online realm that uses augmented and virtual reality to help users interact has captured more attention after Facebook, now renamed Meta, said it would boost capital expenditure and shift focus from its social media business.

The move will be a big boost for Nvidia, the world’s biggest maker of graphics and AI chips, as metaverse applications would need more computing power and drive demand for chips.

The company last month released Omniverse Enterprise, a set of software tools that will allow companies to collaborate in building virtual worlds, the computing power for which comes from Nvidia’s chips.