The world’s largest manufacturer of graphics and AI chips expects sales in the fourth quarter to grow above analysts’ expectations.
Nvidia Corp on Wednesday forecast fourth-quarter revenue ahead of Wall Street’s expectations and is betting on growing its data center business as more internet companies invest in artificial intelligence and the Metaverse.
The company’s stock rose nearly 4 percent in expanded trading. They have more than doubled this year.
According to IBES data from Refinitiv, the world’s largest manufacturer of graphics and AI chips expects sales of $ 7.40 billion, plus or minus 2 percent, which is above the average analyst estimate of $ 6.86 billion lies.
The coronavirus pandemic increased the demand for graphics chips used in game consoles and computers as consumers who stayed at home spent more time playing video games, including with the assistance of cryptocurrency miners. The company is also benefiting from recent efforts such as artificial intelligence chips used in data centers and those used for autonomous vehicles.
In the reported third quarter, revenue for Nvidia’s gaming unit rose 42 percent to $ 3.22 billion and data centers rose 55 percent to $ 2.94 billion.
According to FactSet, analysts had reckoned with US $ 3.13 billion and US $ 2.75 billion for games and data centers.
Overall, sales rose about 50 percent to $ 7.10 billion in the three months ended October 31, which is above the average estimate of $ 6.83 billion, according to IBES data from Refinitiv.
