Nvidia's strong revenue forecast highlights the continued momentum of artificial intelligence

Nvidia, the chipmaker at the center of the AI boom, has again given an upbeat sales forecast, indicating that spending on AI computing remains strong.

The company said in a statement Wednesday (May 22) that it expects fiscal second-quarter revenue of about US $28 billion (S $37.8 billion). Analysts on average expected $26.8 billion, according to data compiled by Bloomberg. Results for the fiscal first quarter ended in April also beat expectations.

The upbeat outlook solidifies Nvidia's position as the biggest beneficiary of AI spending. The company's chips, which help build chatbots and other cutting-edge tools in data centers, have become a hot commodity over the past two years, sending the company's sales soaring. Nvidia's market cap has also soared to more than $2.3 trillion.

Nvidia shares rose about 4% after hours. As of Wednesday's close, the stock was up 92 percent year to date.