Nvidia Corp. shares rose in the extended session Wednesday after the chip maker topped Wall Street expectations with another quarter of record sales.
Nvidia reported third-quarter net income of $2.46 billion, or 97 cents a share, compared with $1.34 billion, or 53 cents a share, in the year-ago period. Adjusted earnings, which exclude stock-based compensation expenses and other items, were $1.17 a share, compared with 73 cents a share in the year-ago period.
Revenue soared to a record $7.1 billion, up 50% from $4.73 billion in the year-ago quarter. Analysts had estimated adjusted earnings of $1.11 a share on revenue of $6.82 billion. Nvidia executives forecasted revenue between $6.66 billion to $6.94 billion in August.
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shares rose nearly 4% after hours, following a 3.1% decline in the regular session to close at $292.61. Shares closed at a split-adjusted all-time high of $308.04 on Nov. 8. All share and per-share figures are presented as split-adjusted.
In the third quarter, gaming sales rose 42% to a record $3.22 billion, surpassing last quarter’s previous high mark of $3.05 billion, while analysts surveyed by FactSet had expected Nvidia gaming sales of $3.13 billion.
On the data-center side, sales rose increased 55% to a record $2.94 billion up from a previous high mark of $2.37 billion from the year-ago period, while analysts expected sales of $2.75 billion.
“Demand for Nvidia AI is surging, driven by hyperscale and cloud scale-out, and broadening adoption by more than 25,000 companies,” said Jensen Huang, Nvidia chief executive, in a statement. “Nvidia RTX has reinvented computer graphics with ray tracing and AI, and is the ideal upgrade for the large, growing market of gamers and creators, as well as designers and professionals building home workstations.”
For the fourth, or current, quarter, the Santa Clara, Calif.-based chip maker forecast revenue of $7.25 billion to $7.55 billion, while analysts surveyed by FactSet have forecast revenue of $6.89 billion on average.
The earnings report follows Nvidia’s GTC event last week, in which the company unveiled several new AI products to give developers the tools they need to build out virtual worlds in the so-called metaverse.
This post was originally published on Market Watch
