Nvidia has announced a forecast for fourth-quarter revenue of $65 billion, which is above Wall Street's average estimate of $61.66 billion. This optimistic outlook is largely attributed to the booming demand for AI chips from cloud service providers. In the latest quarter, Nvidia's data center sales reached $51.2 billion, surpassing expectations. Despite this growth, some analysts express concerns about potential limitations in scaling due to physical bottlenecks in power and infrastructure. Additionally, Nvidia's sales are increasingly concentrated among a few major customers, which raises questions about future revenue stability. The company has also significantly increased its spending on chip rentals from cloud customers, indicating a shift in its business model. Nevertheless, the overall demand for AI chips remains strong, with Nvidia reporting $500 billion in bookings through 2026.