Nvidia Corp (NVDA.O) on Wednesday sky-rocketed past Wallstreets fourth-quarter revenue expectations, fueled by the graphics chipmaker’s PC gaming components, even as it grapples with an expansion beyond computers and into mobile devices.
The Santa Clara, Calif., graphics chipmaker projected revenue of about $1.05 billion in the current period, much higher than the $1 billion Wall Street anticipated.
The gaming chip maker is interested in devices that can take advantage of Tegra’s graphics capabilities, such as gaming systems. It’s also interested in automobiles, where it sees a growing demand for “visual” computing for things like back-seat displays and collision avoidance systems.
With the personal computer industry losing it’s momentum, Nvidia has expanded its graphics chips into mobile devices. But it is meeting stiff competition from larger Qualcomm Inc.
“The graphics market has been fairly resilient, even in the face of poor PC sales,” said Evercore analyst Patrick Wang. “Folks still buy graphics cards to play games.”
CEO Jen-Hsun Huang said in a press release that, “More young people are growing up and can afford to play games,” he said. “More countries are getting into it…And production value is going up…We’re benefiting from that.”
n addition to GPU manufacturing, Nvidia provides parallel processing capabilities to researchers and scientists that allow them to efficiently run high-performance applications. They are deployed in supercomputing sites around the world.