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Nvidia Sales Forecast Signals Game Chip Inventory Is Easing

  • Gaming revenue increases from prior period on new chips
  • Data center division revenue falls for second quarter
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Why Nvidia Earnings Are a Sigh of Relief for Investors
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Nvidia Corp. gave a forecast for the current period that showed makers of gaming computers are beginning to order graphics chips again after working their way through an inventory buildup.

Revenue will be about $2.55 billion this quarter, plus or minus 2%, the Santa Clara, California-based company said in a statement late Thursday. That compares with an average analyst estimate of $2.53 billion. The stock jumped as much as 7.4% in extended trading, but pared almost all of the gains after Chief Financial Officer Colette Kress said on a conference call that the outlook for the server market had worsened since the beginning of the quarter. She said the market is hard to predict and Nvidia didn’t update its annual forecast.