Nvidia Q2 Profit Rises, Strong Outlook

(RTTNews) - Nvidia Corp. (NVDA) on Wednesday reported a second-quarter profit and revenues that trumped Wall Street estimates, as data center business generated more revenues than the company's key gaming business. Looking forward, the company expects its third-quarter revenues to beat current expectations.

Santa Clara, California-based Nvidia's second-quarter profit rose to $622 million or $0.99 per share from $552 million or $0.90 per share last year.

Adjusted earnings were $2.18 per share, up from $1.24 per share in the year ago period. On average, 30 analysts polled by Thomson Reuters estimated earnings of $1.97 per share for the quarter.

Nvidia's revenues for the quarter surged 50% to $3.87 billion from $2.58 billion in the year-ago quarter. Analysts had a consensus revenue estimate of $3.65 billion for the quarter.

"Adoption of NVIDIA computing is accelerating, driving record revenue and exceptional growth," said Jensen Huang, founder and CEO of NVIDIA. "Growth in GeForce gaming accelerated as gamers increasingly immerse themselves in realistic virtual worlds created by NVIDIA RTX ray tracing and AI.

Revenue from gaming, Nvidia's core business, gained 24% to $1.65 billion, however, data-center business generated more revenues than key gaming business, as it surged 54% to $1.75 billion.

Looking forward to the third quarter, the company expects revenues of $4.40 billion, plus or minus two percent. Analysts currently estimate revenues of $3.97 billion for the quarter.

NVDA closed Thursday's trading at $148.77, down $1.30 or 0.87%, on the Nasdaq. The stock, however, gained $9.41 or 6.33% in the after-hours trade.