Nvidia Corp lifted quarterly earnings beating expectations on strong demand in the data center industry on the back of growing cloud adoption.
Data center revenues in the third quarter were up 31% from a year ago, while gaming revenues were down 51% from a year ago. Shares of Nvidia jumped 1% in after-hours trading. Cloud companies are increasingly using Nvidia chips in their systems. Microsoft is working with the company to build a “huge” computer to handle AI’s intensive computing work in the cloud.
Nvidia CFO Colette Kress said export restrictions impacted third-quarter revenue, but the decline was “largely offset by sales of alternative products in China.” Company adjusted revenue for the quarter ended October 30 was $5.93 billion. Analysts were expecting revenue of $5.77 billion on average, according to data from Refinitiv. Nvidia has forecast revenue of $6 billion for the current quarter, versus an expectation of $6.09 billion.