Nvidia Tops Sales Guidance, Gives Strong Outlook

Nvidia Corp. said its second-quarter profit surged as the chip maker exceeded its revenue guidance and saw strong demand for its new products.

Nvidia shares rose 2.5% to $61.17 in after-hours trading.

Nvidia projects revenue of $1.68 billion, plus or minus 2%, for the third quarter. Analysts polled by Thomson Reuters projected $1.45 billion.

Nvidia, based in Santa Clara, Calif., is a prominent name in graphics processing units used in gaming software. It has expanded in many new sectors ranging from virtual reality to self-driving cars.

"Strong demand for our new Pascal-generation GPUs and surging interest in deep learning drove record results," Chief Executive Jen-Hsun Huang said in prepared remarks.

For the quarter ended July 31, net income was $253 million, or 40 cents a share, compared with $26 million, or 5 cents a share, a year earlier. Excluding stock-based compensation and other items, earnings rose to 53 cents a share from 34 cents a share.

Revenue increased 24% to $1.43 billion, compared with Nvidia's guidance of $1.35 billion, plus or minus 2%.

Last month, Nvidia unveiled a new chip for well-heeled gaming enthusiasts that it hopes will also appeal to artificial-intelligence specialists. The new Titan X chip, the successor to a current model under the same name, is packaged on an add-in card for personal computers for $1,200. The chip packs 12 billion transistors on a piece of silicon, compared with around seven billion for a high-end microprocessor of the kind sold by Intel Corp.

Don Clark contributed to this article.

Write to Josh Beckerman at [e-mail]

(END) Dow Jones Newswires

August 11, 2016 18:15 ET (22:15 GMT)

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