Nvidia forecasts upbeat revenue on data center chip demand

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Nov 17 (Businesshala) – Nvidia Corp (nvda.o) on Wednesday forecast fourth-quarter revenue above Wall Street’s expectations, betting on growth in its data center business as more Internet companies invest in artificial intelligence and the metaverse. are ready for.

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The company’s shares were up about 4% in extended trading. This year their number has more than doubled.

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The world’s largest maker of graphics and AI chips expects revenue of $7.40 billion, plus or minus 2%, in the current quarter, higher than analysts’ average estimate of $6.86 billion, according to data from Refinitiv’s IBES.

The pandemic spurred demand for graphic chips used in gaming consoles and computers as consumers staying at home spent more time playing video games with the support of cryptocurrency miners. The company is also benefiting from recent efforts such as artificial intelligence chips used in data centers and for autonomous vehicles.

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For the reported third quarter, revenue in Nvidia’s gaming unit rose 42% to $3.22 billion and data centers rose 55% to $2.94 billion.

According to FactSet, analysts had expected $3.13 billion and $2.75 billion for gaming and data centers, respectively.

Overall, revenue rose nearly 50% to $7.10 billion for the three months ended October 31, according to IBES data from Refinitiv, which exceeded the average estimate of $6.83 billion.

Reporting by Nivedita Balu in Bengaluru; Editing by Shreeraj Kalluvilla

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