Graphics-chip maker Nvidia (NVDA) late Thursday smashed Wall Street's estimates for its fiscal fourth quarter and guided higher for the current quarter, sending its stock up sharply in extended trading.
Nvidia reported earnings per share of $1.78, up 80% year over year, on sales of $2.91 billion, up 34%, in the quarter ended Jan. 28. Analysts expected earnings of $1.16 a share on sales of $2.67 billion for the January quarter, according to Zacks Investment Research.
Nvidia shares surged 11% in after-hours trading on the stock market today. During the regular session, Nvidia fell 4.9% to 217.52.
For the current quarter, Nvidia expects revenue of $2.9 billion, up 33% year over year. It did not give a target for earnings per share. Nvidia expects its GAAP gross profit margin to be 62.7% in the first quarter, compared with 61.9% in the fourth quarter.
Wall Street was modeling Nvidia to earn 97 cents a share, up 18%, on sales of $2.44 billion, up 26%, for the April period, according to Zacks.
Nvidia is best known for making graphics processors for PCs and gaming consoles, but has a fast-growing business selling processors for cloud data centers, artificial intelligence applications and self-driving cars. Lately its processors have been used for mining cryptocurrency such as Bitcoin and Ethereum.
IBD'S TAKE: Nvidia is ranked No. 8 on the IBD 50 list of top-performing growth stocks.
"In a powerful sign of our progress, attendees at Nvidia's GPU Technology Conferences reached 22,000, up 10-fold in five years, as software developers working in AI, self-driving cars, and a broad range of other fields continued to discover the acceleration and money-saving benefits of our GPU computing platform," Nvidia Chief Executive Jensen Huang said in a news release.
Huang touted the company's graphics processing units for use in artificial intelligence applications.
"Industries around the world are racing to incorporate AI," he said. "Virtually every internet and cloud service provider has embraced our Volta GPUs. Hundreds of transportation companies are using our Nvidia Drive platform. From manufacturing and health care to smart cities, innovators are using our platform to invent the future."
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