Listen to this article
Shares in US graphics chipmaker Nvidia leaped up 13 per cent in after-hours trading, after it reported results ahead of expectations across a portfolio of products that power gaming PCs and consoles, virtual reality, artificial intelligence and self-driving cars.
The Silicon Valley-based company saw revenues rise 48 per cent year-over-year to $1.94bn, just ahead of Wall Street’s forecasts, with guidance for its second quarter also beating estimates at around $1.95bn. Net income more than doubled to $507m, with earnings per share also more than twice last year’s figure at 86 cents.
Nvidia, which was the best-performing stock in the S&P 500 last year, has seen its shares pause for breath this year as investors grew concerned about increased competition from AMD, Intel and Qualcomm, as well as slower growth among its videogamer customers.
“The AI revolution is moving fast and continuing to accelerate,” said Jensen Huang, Nvidia’s chief executive. “Nvidia’s GPU deep learning platform is the instrument of choice for researchers, internet giants and startups as they invent the future.”
As well as striking partnerships with auto supplier Bosch on self-driving cars and data-centre AI tie-ups with Microsoft, Google, Tencent and Baidu, Nvidia has also benefitted from the success of Nintendo’s Switch, which uses its Tegra processors. Tegra revenues more than doubled overall to $332m, while its core GPU business was up 45 per cent to $1.56bn. Data centre sales rose 186 per cent to $409m.
Nvidia shares, which closed at $102.94, were 13 per cent higher in after-hours trading at $116.75, their highest point since early February.