Nvidia Forecasts $91 Billion in Sales for Quarter Ending July

Nvidia reported sales of $91 billion for the three months ending in July. The forecast came in above the average analyst estimate of $87 billion but below the high end of projections that reached $96 billion. The company increased its quarterly dividend to 25 cents per share from one cent. Nvidia also announced $80 billion in stock repurchases.

Nvidia shares fell less than 1 percent in late trading after the results were released. The stock had gained 20 percent this year, a performance that outpaced the S&P 500 but trailed most major chip peers.

Nvidia remains the top seller of AI accelerators used to develop artificial intelligence models. The company faces competition from Advanced Micro Devices, Broadcom, and Alphabet's Google. Data center spending by major technology firms is projected to reach roughly $725 billion this year. Nvidia has stated it has more orders than it can fill and is investing to increase supply.