While $NVDA (+1,51%)
revenue grew 94% in 3Q to $35.1 billion, this was not enough for shareholders.

Nvidia Corp. delivered a revenue forecast that failed to meet the highest expectations, showing that its dizzying AI-fueled growth run has its limits.

Fiscal fourth-quarter sales will be about $37.5 billion, the company said in a statement Wednesday. Though the average analyst estimate was $37.1 billion, projections ranged as high as $41 billion.

The outlook suggests that AI excitement may be getting ahead of reality. Nvidia investors bid up the shares nearly 200% in 2024, turning it into the world’s most valuable company. But the chipmaker has had trouble keeping up with demand for its products and struggled with production snags this year.

Chief Executive Officer Jensen Huang said that Nvidia’s new lineup, called Blackwell, is now in “full production.” Demand for the products is expected to exceed demand for several quarters. Hopper, the previous design, is still in demand, Huang added.

Manufacturing challenges slowed the Blackwell rollout. For now, Nvidia can’t fill all the orders it’s receiving, the company has said. After production improves, supplies will be plentiful, according to Huang.

“AI is transforming every industry, company and country,” he said in the statement. “Industrial robotics investments are surging with breakthroughs in physical AI, and countries have awakened to the importance of developing their national AI and infrastructure.”

But some investors were looking for more of a blowout quarter. Shares of Nvidia fell about 3% in extended trading following the announcement. They previously closed at $145.89 in New York.

The Santa Clara, California-based company has rapidly expanded its product lineup to include networking, software and services, as well as fully built-out computer systems. Huang is traveling the world lobbying for a broader adoption of his technology and trying to spread its use by corporations and government agencies.