NVIDIA reports Q3 earnings: beats the Street with renewed focus on mobile

NVIDIA reports Q3 earnings: beats the Street with renewed focus on mobile
NVIDIA has been at the forefront of mobile chips as it managed to become the first to introduce dual-core to smartphones and tablets, and it has been reaping the benefits in the last couple of quarters. This quarter, the company beats analysts expectations and reports a 4.9% sequntial growth in revenue to $1.07 billion and $178.3 million in net income. NVIDIA shares went up 5% right after the announcement.

Chief executive Jen-Hsun Huang explained that the growth was spurred mostly by the company’s  GPUs and mobile chips, and predicted an even brighter future as the company is gearing up to be the first to jump to quad-core processors with the Tegra 3. The transition is likely to happen next quarter with the Asus Transformer Prime, the first tablet equipped with the new chip. Curious how is that new chip expected to perform? NVIDIA promises a desktop-class performance with a 5 times speed boost over Tegra 2 and a three-fold increase in graphics processing.

The majority of NVIDIA’s revenues still come from its PC GPU unit, though, and that’s something that might take a hit after floods hit manufacturing plants in Thailand. This coupled with weaker demand would lead to less PC shipments.

At the same time, the mobile Tegra chips are growing quickly and Huang noticed that they alone are expected to bring over $1 billion in revenue next year. NVIDIA’s Consumer Products group grew to $191 million this trimester, up 14% on the quarter. Check out the press release below for all the numbers.

source: NVIDIA

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