Nvidia gives strong forecast driven by gamer, data center demand

Nvidia Corp., the largest U.S. chipmaker by market value, gave a bullish forecast on demand for chips used in gaming PCs and data centers. Revenue in the current quarter will be about $6.3 billion, plus or minus 2%, the Santa Clara, California-based company said in a statement late Wednesday.

The adjusted gross margin, or the percentage of revenue left after deducting costs, will be 66.5%, the company said. The sales prediction compares with a $5.49 billion average analyst estimate, according to data compiled by Bloomberg.

Founder and Chief Executive Officer Jensen Huang has drawn investors to his company’s stock by persuading owners of data centers that are the backbone of the internet that his graphics chips are key to artificial-intelligence-based computing.