The revenue and forecast of Nvidia Corp. wanted Wednesday past expectations, despite the COVID-19 pandemic, because the data center chips for the company for the first time broke more money than the gaming specialist’s core business.
Nvidia NVDA,
reported second-quarter fiscal net income of $ 622 million, or 99 cents a share, compared to $ 552 million, or 90 cents a share, in the same period last year. Adjusted income, excluding inventory-based expenses and other items, was $ 2.18 per share, compared to $ 1.24 a share in the previous year. Revenue rose to $ 3.87 billion from $ 2.58 billion in the quarter.
Analysts surveyed by FactSet had forecast revenue of $ 1.97 a share on revenue of $ 3.65 billion.
“Adoption of Nvidia computer is faster, driving record revenue and exceptional growth,” said Chief Executive Jensen Huang in Wednesday’s news release.
Shares fell less than 1% in trading after hours, following a recent prolonged rise to record highs. The stock fell 1% to $ 485.54 in the regular trading session to fall short of Monday’s record high of $ 493.48.
Nvidia has estimated this year at a record $ 300 billion-plus, easily surpassed by former Silicon Valley Intel Corps semiconductor king. INTC,
, in hopes of its video game chips and server offering. The data center segment is especially important for investors after Nvidia announced its latest offer for servers earlier this year.
For more: Nvidia is officially not just a gaming company anymore
Nvidia reported $ 1.75 billion in data center sales, well more than double last year totaling $ 655 million and ahead of analysts’ average expectations of $ 1.71 billion. Gaming sales increased more than expected, totaling sales of $ 1.65 billion after posting revenue of $ 1.31 billion a year ago. The average Wall Street estimate was for sales of $ 1.41 billion. It was the first time data center sales were hurting gaming sales for the company.
For the third quarter, Nvidia expects revenue of $ 4.31 billion to $ 4.49 billion, while analysts had sales of $ 3.97 billion.
For the year, Nvidia shares have gained 106%, while the PHLX Semiconductor Index SOX,
has risen 19%, the S&P 500 index SPX,
has advanced 4.5%, and the Nasdaq Composite Index COMP,
has won 24%.
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