(Reuters) – Nvidia Corp forecast fourth-quarter revenue above Wall Street expectations on Wednesday, betting on robust demand for its graphic chips for gaming devices and data centers.
Besides high-end gaming devices, Nvidia’s graphics chips are being used in data centers to speed up computing for artificial intelligence work such as image recognition, which helped it eclipse rival Intel Corp’s market capitalization earlier this year.
Nvidia also beat revenue expectations for the third quarter as gaming business revenue jumped 37% to $2.27 billion from a year earlier, beating FactSet estimates of $2.06 billion.
Revenue from the data center segment more than doubled to $1.9 billion, compared with FactSet estimates of $1.84 billion.
The chipmaker said it expects current-quarter revenue of $4.80 billion, plus or minus 2%, compared with analysts’ average estimate of $4.42 billion, according to IBES data from Refinitiv.
Reporting by Ayanti Bera in Bengaluru and Stephen Nellis in San Francisco; Editing by Arun Koyyur