Nvidia shares hit record highs on earnings forecast

STORY: Nvidia shares surged to a record high in extended trade on Wednesday, after forecasting quarterly revenue above estimates.

For the fiscal second-quarter, the chip giant forecast its revenue to reach $28 billion, plus or minus 2% - surpassing analyst estimates.

First-quarter revenue surged 262% year-over-year, to just over $26 billion, also beating forecasts.

CEO Jensen Huang said Nvidia's upcoming Blackwell AI chips will ship in the current fiscal quarter, with production increasing in the following quarter.

The company said it's expecting demand for those chips to exceed supply "well into next year."

Nvidia dominates more than 80% of the market share for AI chips, and counts companies like Facebook parent Meta among its clients.

Analysts say they expect its high performance products to maintain their firm grip on the market, in the red hot race to develop artificial intelligence.

The California-based company also said on Wednesday it would do a stock split and raise its dividend.

The AI poster child's stock has surged 90% so far this year.

Wednesday's news helped boost shares in rival chipmakers as well, and could add fresh fuel to a stock market rally that has lifted indexes to record highs.