Nvidia profit, revenue beat on gaming chip demand

Nvidia profit, revenue beat on gaming chip demand

Nvidia Corp forecast fourth-quarter revenue below Wall Street estimates on Thursday, hurt by seasonal weakness in demand for its gaming cards used in personal computers and laptops.

NVIDIA graphic cards are shown for sale at a retail computer store in San Marcos, California
FILE PHOTO: NVIDIA computer graphic cards are shown for sale at a retail store in San Marcos, California, U.S. August 14, 2018. REUTERS/Mike Blake

REUTERS: Nvidia Corp beat Wall Street estimates for third-quarter revenue and profit on Thursday on higher demand for its gaming chips and predicted strong growth in data centre business, sending shares up 2per cent in extended trading.

Revenue from gaming business, the biggest contributor to sales, fell 6per cent to US$1.66 billion, but beat analysts' estimate of US$1.54 billion, according to FactSet.

The company said seasonal weakness in demand for its gaming cards used in personal computers and laptops would hurt its fourth-quarter performance.

Nvidia expects fourth-quarter revenue of US$2.95 billion, plus or minus 2per cent, while analysts on average were expecting US$3.06 billion, according to IBES data from Refinitiv.

Total revenue in the reported quarter fell 5per cent to US$3.01 billion, but was above expectation of US$2.91 billion.

Excluding items, it earned US$1.78 per share, above estimates of US$1.57.

(Reporting by Munsif Vengattil in Bengaluru; Editing by Arun Koyyur)

Source: Reuters

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