Nvidia Forecast Tops Estimates as Gamers Spend on GearBy
Gaming-chip revenue rose 18 percent in the second quarter
Sales of data-center parts more than doubled from a year ago
Nvidia Corp., the biggest maker of graphics chips used to enhance computer gaming, forecast third-quarter sales that will beat analysts’ estimates as new products help attract players in search of the most realistic experience.
- Revenue in the current period will be $1.68 billion, plus or minus 2 percent, the company said Thursday in a statement. That compares with an average analyst estimate of $1.45 billion, according to data compiled by Bloomberg.
- Net income in the fiscal second quarter, which ended July 31, rose to $253 million, or 40 cents a share, from $26 million, or 5 cents, a year earlier.
- Revenue climbed 24 percent to $1.43 billion. Analysts on average had predicted earnings of 38 cents a share on sales of $1.35 billion.
- Nvidia shares jumped 3 percent in extended trading. They had gained 2 percent to $59.70 at the close in New York.
The Big Picture
Founder and Chief Executive Officer Jen-Hsun Huang has kept Nvidia on a growth path by finding new users for its graphics chips even as the PC market shrinks. He’s been helped by gamers’ persistent willingness to upgrade to the highest-performing parts and the increasing use of different versions of those chips in new markets, such as artificial intelligence and autonomous cars.
- Gaming-chip revenue rose 18 percent from a year earlier to $781 million, Nvidia said. Sales of processors used in data centers more than doubled to $151 million, and automotive chips surged 68 percent to $119 million.
- Nvidia’s stock has surged to a record this year, advancing 81 percent.
- The gains have made the Santa Clara, California-based company the best-performing chip stock in the world this year by more than 30 percentage points.