(Reuters) -AI chipmaker Nvidia, the dominating force behind the U.S. stock market rally since 2023, forecast third-quarter revenue above Wall Street estimates on Wednesday.

Helped by robust demand for its artificial intelligence chips from cloud providers expanding infrastructure to power generative AI technology, Nvidia expects revenue of $54 billion, plus or minus 2%, in the third quarter. That compared with analysts’ average estimate of $53.14 billion, according to data compiled by LSEG.

Shares of the world’s most valuable firm were down 2.4% in extended trading, paring a knee-jerk loss after the report. NVDA gained more than a third so far in 2025 to outpace the benchmark S&P 500 Index’s year-to-date rise of nearly 10%.

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