The Financial Post reports in its Friday, Feb. 27, edition that Nvidia disappointed investors with its latest sales forecast, raising concerns about an overheated artificial intelligence economy. A Bloomberg dispatch to the Post reports that though it delivered a first quarter outlook that easily beat the average Wall Street estimate, Nvidia after-hours shares fell during a conference call with analysts. On Thursday the stock finished down $10.73 (U.S.) at $184.89 (U.S.).
Nvidia's explosive sales growth has made it the world's most valuable company, but investors now seek stronger assurances that AI sales will continue.
Chief executive officer Jensen Huang addressed concerns, asserting that customers are already profiting from their new computing power, which will encourage continued high levels of investment.
He said: "You need compute capacity, and that translates directly to growth, and that translates directly to revenues. I'm confident their cash flows are growing."
Chief financial officer Colette Kress tried to defuse other concerns raised by analysts, including the spectre of supply constraints. Nvidia has secured enough components to be able to meet growing demand, she said.
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