FILE PHOTO: NVIDIA computer video graphics cards, are displayed for sale at a shop in San Marcos, California, USA, August 14, 2018. REUTERS/Mike Blake
(Reuters) – Nvidia Corp beat Wall Street’s estimates for third-quarter sales and profit on Thursday on higher demand for its chips, and is predicted to have strong growth in the data center business, sending shares up 2 percent in extended trading.
The turnover of the gaming business, the largest contributor to revenue, fell 6% to $1.66 billion, but beat analysts ‘ estimate of $1.54 billion, according to FactSet.
The company said the seasonal weakness in the demand for and the game cards used in personal computers and laptops, it would hurt fourth-quarter performance.
Nvidia expects fourth-quarter revenue of $2.95 billion, plus or minus 2%, while analysts, on average, had expected $3.06 billion, according to IBES data, Refinitiv.
The total revenue in the reported quarter decreased by 5% to $3.01 billion, but exceeded expectations of $2.91 billion.
With the exception of the items, it earned $1.78 per share, above estimates of $1.57.
(This story fixes typographical error in headline)
Reporting Munsif Vengattil in Bengaluru; Editing by Arun Koyyur