NVIDIA Soars 9% After Beating On Profit And Revenue, Credits Growth In Its Gaming And Auto Tech Divisions

NVIDIA shares were up nearly 9 percent in after-hours trading following its announcement of a beat in FY 2016 Q2 earnings Thursday.

The computer component manufacturer managed to exceed street expectations on revenue with $1.153 billion while posting non-GAAP earnings of $0.34 per share, up 13 percent from a year ago. Analysts had looked for Nvidia to generate $0.20 per-share profit on top line of $1.01 billion.

“Our strong performance in a challenging environment reflects NVIDIA’s success in creating specialized visual computing platforms targeted at important growth markets,” Jen-Hsun Huang, CEO of NVIDIA, said in the report.

The Santa Clara, CA-based tech company has generally reported healthy earnings but posted a rare miss this past quarter and has seen its share price slump a bit over the past three months.

source: Google Finance

Nvidia credited its beat Thursday to growth in its gaming tech and auto divisions.

“Our gaming platforms continue to be fueled by growth in multiple vectors – new technologies like 4K and VR, blockbuster games with amazing production values, and increasing worldwide fan engagement in e-sports. We’re working with more than 50 companies that are exploring NVIDIA DRIVE to enable self-driving cars. And our GPU-accelerated data center platform continues to make great strides in some of today’s most important computing initiatives – cloud-based virtualization and high performance computing applications like deep learning.