(Reuters) -Chip designer Nvidia forecast third-quarter revenue above Wall Street targets on Wednesday, boosted by soaring demand for its chips that power nearly all the world's major artificial intelligence apps.
Shares of the Santa-Clara, California-based company rose 6.3% in trading after the bell.
They have tripled this year, making the company the first ever trillion-dollar chip business as investors bet Nvidia will be the key beneficiary of the AI boom.
Analysts have estimated that demand for Nvidia's prized AI chips is exceeding supply by at least 50%, adding that the imbalance will stay in place for the next several quarters.
From AI startups to major cloud services providers like Microsoft, all are looking to get their hands on more Nvidia chips. Demand from China is also in overdrive, as companies there are placing rush orders to stockpile chips before any further U.S. export curbs come into action.
The company forecast third-quarter revenue of about $16 billion, plus or minus 2%. Analysts polled by Refinitiv on average were expecting $12.61 billion.
Adjusted revenue in the second quarter was $13.51 billion, compared to estimates of $11.22 billion.
(Reporting by Chavi Mehta in Bengaluru; Editing by Maju Samuel)
