After the American technology company released a new wave of the most updated gaming graphics and intensive artificial intelligence software, Nvidia is reporting a third-quarter earnings report twice from the recent year of $2 billion in revenue 53.6% more compared to investor and analyst forecasted revenue estimate of $1.69 billion. The company was also placed on the S&P 500's best performing stock by the end of Thursday's trading session.
Among the company's top product performers are their latest Pascal GPU's for gaming computers, their VR products, data center AI computing including Amazon's Web Services, Microsoft's Azure, and Alibaba's cloud business which includes and their self-driving cars this according to Nvidia founder and current chief executive officer Jen-Hsun Huang. The company is also known for the production of graphics processing unit chips popular among games that require high graphic specs.
The company's automobile sector and business also jumped by up to 60.8% gaining a revenue of $127 million alone following their partnership and deal with Tesla that Nvidia would be providing chips for their autopilot or self-driving system.
This comes after investors and analysts did not expect a fast growth in the company’s sales after it went beyond expected with Nvidia's data center business earning $240 million showing a growth of 193% compared to last year.
NVIDIA is reporting a growth in their dividend from 11.5 cents to 14 cents and a market value of almost $36 billion by Thursday's late afternoon trading with the shares doubling to up to 16% following Thursday's after-hours trading.
The Santa Clara California-based company has overall reported a fiscal-third-quarter of an 83 cents per share earnings leading to a $2 billion revenue while analysts only expected 57 cents per share earnings.
Nvidia To Power Nintendo Switch
Aside from Nvidia's successful Pascal Products, the upcoming Nintendo Switch gaming device which is set to be released next year is set to be powered by Nvidia.
Nintendo Switch which has caught the attention of a huge audience features a new kind of console that allows you to carry it due to its portability feature called the Nintendo NX like the previous Nintendo console while having the capability to be connected to a huge television screen for games originally played on bigger consoles such us the Xbox and Playstation. This part of the news, however, alarmed players since Nintendo was originally not huge among graphic-heavy games so to say Nvidia might be the one to solve the said issue. Nvidia did confirm that the Nintendo NX will be powered by a Nvidia GPU custom Tegra Processor which is one of the top graphics cards in the world.
Collectively, the company's net income have jumped to almost $542 million from earnings of 83 cents per share compared to their earnings per share last year of only 44 cents.
As of Thursday, Nvidia shares have performed as one of the top stocks in the S&P500 after the growth of its shares went beyond 6% higher than expected.
Although analysts have expected an upward growth from the company's earnings prior to the official third quarter report, the official Q3 earnings have driven the company's shares to jump by more than 10% despite closing lower during Thursday's close at $67.88 trading the highest at $71.50. With the coming holiday season, the company's current earnings are still yet to extend up till the fourth quarter and with the release of the Nintendo Switch up to next year.