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• Nvidia expects revenue of $7.40 billion for the current quarter
• Shares of the company were up 4% in extended trading
Nvidia Corp on Wednesday raised fourth-quarter revenue beating analysts’ expectations as more internet companies are set to invest in artificial intelligence.
Nvidia, the world’s largest maker of graphics and AI chips, has been under spotlight since Facebook, now renamed Meta, announced it would boost capital expenditure and shift focus from its social media business.
Last month, Nvidia released Omniverse Enterprise, a set of software tools allowing companies to collaborate in building virtual worlds.
Nvidia expects revenue of $7.40 billion for the current quarter, above analysts’ expectations of $6.86 billion, according to Refinitv IBES data.
Shares of the company were up 4% in extended trading.
Third-quarter earnings
Revenue in Nvidia’s gaming unit rose 42% to $3.22 billion in the third-quarter, while revenue surged 55% for the data centers to $2.94 billion.
According to FactSet, analysts expected $3.13 billion and $2.75 billion for gaming and data centers, respectively.
Overall revenue rose about 50% to $7.10 billion in the quarter, beating estimate of $6.83 billion, according to Refinitiv IBES data.
For the quarter, earnings on an adjusted basis were $1.17 per share, 6 cents more than expected.
Despite a global chip crunch, the company has escaped major supply chain problems. The supply chain costs, though, are increasing.
Nvidia said outstanding inventory purchases and long-term supply obligations were $6.90 billion, compared to $2.57 billion a year earlier.
(With inputs from Reuters)
Picture Credits: Reuters