Nvidia shares gained 2.64% as data-center business fuels growth.
Nvidia posted quarterly sales that topped analysts’ estimates after its data-center business helped offset sluggish demand for video-game chips.
While revenue declined 17% to $5.93 billion in the fiscal third quarter, that handily beat the $5.79 billion average estimate. Data-center revenue jumped 31%, also beating projections, compared with a 51% drop for the company’s gaming business.
Though Nvidia’s fourth-quarter forecast was a little light of estimates, the report allayed investors’ fears that the industry is deteriorating further. Owners of large cloud-computing facilities are increasingly using Nvidia’s graphics chips to handle artificial intelligence tasks, and that business has held up better than the sputtering personal-computer market.
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