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Nvidia forecasted fourth-quarter sales of approximately $37.5 billion, which slightly exceeded the average analysts' estimates but fell short of more optimistic predictions. Despite posting strong demand that continues to exceed supply, concerns were raised about rising production and engineering costs impacting profit margins. Following the announcement, investor sentiment turned tepid, with Nvidia shares falling 2.5% in after-hours trading, reflecting a market correction after nearly 200% growth throughout the year. This situation highlights the nuanced relationship between high expectations and actual performance in the tech industry.