Nvidia forecasts $91 billion in sales for the quarter ending in July, beating analyst estimates, as it pitches diversification beyond hyperscalers to skeptical investors.

Nvidia reported that sales in the three months ending in July will be about $91 billion, topping the average analyst estimate of $87 billion, though projections ranged as high as $96 billion.

The company predicted that businesses and governments beyond large data center operators (known as hyperscalers) would become a bigger source of revenue, and said that physical AI (robots and automated vehicles) would bring a colossal new opportunity down the road.

Despite beating estimates and expanding investor rewards including a dividend increase, Nvidia shares slipped about 1% in late trading Wednesday, signaling investor skepticism.

Nvidia faces growing competition from Advanced Micro Devices Inc., Broadcom Inc., and Google, while major buyers are developing their own in-house components; Wall Street still predicts the company's revenue will account for more than a third of the entire semiconductor sector's sales this year.