Nvidia Gives Lackluster Forecast, Stoking Fears of AI Slowdown

<p>Watch Bloomberg Businessweek Daily LIVE every day on YouTube: http://bit.ly/3vTiACF.</p> <p>Nvidia Corp., the world&rsquo;s most valuable publicly traded company, gave a tepid revenue forecast for the current period, fueling concerns that a massive run-up in artificial intelligence spending is slowing.</p> <p>Sales will be roughly $54 billion in the fiscal third quarter, which runs through October, the company said in a statement Wednesday. Though that was in line with the average Wall Street estimate, some analysts had projected more than $60 billion. The forecast excluded data center revenue from China, a market where it has struggled with US export restrictions and opposing pressure from Beijing.</p> <p>The company&rsquo;s tepid outlook adds to concern that pace of investment in artificial intelligence systems is unsustainable. Difficulties in China also have clouded Nvidia&rsquo;s business. Though the Trump administration recently eased restrictions on exports of some AI chips to that country, the reprieve hasn&rsquo;t yet translated into a rebound in revenue.</p> <p>Today's show features:<br />- Jay Goldberg, Senior Analyst, Semiconductors &amp; Electronics with Seaport Research Partners, and Bloomberg Intelligence Global Head of Technology Research Mandeep Singh break down Nvidia&rsquo;s latest earnings report<br />- Natasha Sarin, Professor of Law at Yale Law School, and Co-Founder and President of the Yale Budget Lab, on US monetary and trade policy issues<br />- Dana Telsey, Founder, CEO and Chief Research Officer of Telsey Advisory Group, on key trends within the latest wave of retail earnings and the outlook for the US consumer</p><p>See <a href="https://omnystudio.com/listener">omnystudio.com/listener</a> for privacy information.</p>