Nvidia Corp.’s quarterly results blew past estimates to record highs Wednesday, with sales surpassing $4 billion for the first time as the chip maker rolled out new gaming cards and data-center demand stayed hot.
reported third-quarter net income of $1.34 billion, or $2.12 a share, compared with $899 million, or $1.45 a share, in the year-ago period. Adjusted earnings were $2.91 a share, compared with $1.78 a share in the year-ago quarter. Revenue soared to $4.73 billion from $3.01 billion in the year-ago quarter.
Analysts surveyed by FactSet had forecast earnings of $2.58 a share on revenue of $4.42 billion. Nvidia had forecast revenue of $4.31 billion to $4.49 billion.
Nvidia introduced new gaming chips in the quarter, based on a new design that was rolled out in its server chips the previous quarter, when data-center sales outperformed gaming sales for the first time ever. The rollout of new gaming cards in September flipped the momentum: Gaming sales surged 37% to a record $2.27 billion, while data-center sales soared 162% to $1.9 billion from the year-ago period, also a record high.
Analysts surveyed by FactSet had expected gaming sales of $2.06 billion. data-center sales of $1.84 billion.
“Nvidia is firing on all cylinders, achieving record revenues in gaming, data center and overall,” said Jensen Huang, Nvidia founder and chief executive, in a statement. “The new Nvidia GeForce RTX GPU provides our largest-ever generational leap and demand is overwhelming.”
For the fourth quarter, Nvidia looks to possibly set even more records, forecasting revenue of $4.7 billion to $4.9 billion, while analysts had forecast revenue of $4.4 billion on average.
Shares slid about 0.3% in after-hours trading, following a less than 0.1% uptick in the regular session to close at $537.15. Nvidia shares are up 128% for the year, while the PHLX Semiconductor Index
has gained 37%, the S&P 500 index
rose 10%, and the Nasdaq Composite Index