Friday, November 26

Nvidia shares jumped 8% after projecting higher revenue from chip demand

The world’s largest manufacturer of graphics cards and artificial intelligence chips expects current quarter revenue of $ 7.4 billion, plus or minus 2% above the average analyst estimate of $ 6.86 billion, according to IBES data from Refinitiv.

The pandemic boosted demand for graphics chips used in game consoles and computers, when consumers who stayed at home spent more time playing video games.

The company is also benefiting from some recent efforts, such as the artificial intelligence chips used in data centers and those in autonomous vehicles.

For the reported third quarter, revenue at Nvidia’s gaming unit increased 42% to $ 3.22 billion and data center revenue increased 55% to $ 2.94 billion.

Analysts were expecting $ 3.13 billion and $ 2.75 billion for the gaming and data center businesses, respectively, according to FactSet.

Overall, revenue increased about 50% to $ 7.1 billion during the three months ended October 31, above the average estimate of $ 6.83 billion, according to IBES data from Refinitiv.

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