Nvidia does better than analysts expected
Graphics chip maker Nvidia has done a lot better than analysts were expecting and announced third quarter results which are not that bad.
Although its revenue forecast was a bit lower than expected it would appear that Nvidia had not not suffered as much from the slowly dying PC graphics market.
For the last year or so Nvidia has had a policy of getting away from its traditional business of designing graphics chips for personal computers. It jumped into mobile devices with its Tegra chips.
Earlier this year Nvidia had some successes with its processors appearing in tablets made by Samsung and LG. Its newest mobile processor, Tegra 3, also faces growing competition from chip heavyweights Qualcomm and Texas Instruments.
However, Nvidia said sales in its Professional Solutions group, which includes graphics chips used in workstations, grew 9.5 percent sequentially in the third quarter. This is a bit of a surprise from a division that many had written off.
It looks like emerging markets like China, where many families are buying their first personal computers, have supported sales of Nvidia and other PC chipmakers in recent quarters and helped offset slow demand in the United States and Europe.
Nvidia's Consumer Products group, which includes Tegra rose 14 percent sequentially to $191 million in the quarter. Chief Executive Jen-Hsun Huang in September said Tegra revenues would reach $1 billion next year.
Nvidia's main GPU business rose one percent from the second quarter and Huang said that revenue in the current quarter would be up or down two percent from the past quarter.
Analysts predicted an average forecast of $1.069 billion which is more or less the $1.045 billion to $1.087 billion Huang is predicting.
Nvidia's revenue for this quarter was $1.066 billion, up 26 percent and a bit above analysts' average estimate of $1.062 billion.
This morning Reuters said that shares in Nvidia had risen as Wall Street was impressed with the results.