Chipmaker Nvidia tops estimates on gaming, data center boost

Image result for Chipmaker Nvidia tops estimates on gaming, data center boost Nvidia Corp’s (NVDA.O) quarterly profit and revenue topped market estimates and the chipmaker also gave a strong revenue forecast for the current quarter, powered by demand for its graphics chips used in gaming and data centers.

The company’s shares were up 2.5 percent in extended trading on Thursday. Their roughly 92-percent surge this year has made them the third-best performing stock on the Philadelphia Semiconductor index .SOX.

The strength in Nvidia’s data center in the third quarter comes after a disappointing showing in the previous quarter and on the heels of rival Intel Corp (INTC.O) showcasing its strength in the same market two weeks back.

Nvidia gets the bulk of its revenue from gaming, for which it is best known. But its growth hinges on new areas, especially its data center business, where its customers include Amazon.com Inc’s (AMZN.O) Amazon Web Services and Microsoft Corp’s (MSFT.O) Azure.

Revenue from the business, Nvidia’s second-biggest revenue contributor, more than doubled to $501 million in the quarter and easily beat analysts’ estimate of $474.2 million, according to Thomson Reuters I/B/E/S.

“We’ve been steadfast with the excitement of accelerated computing for data centers. And I think this is just the beginning of it all,” Chief Executive Jensen Huang said on an analyst call.