FILE PHOTO: The logo of technology company Nvidia is seen at its headquarters in Santa Clara, California February 11, 2015. REUTERS/Robert Galbraith
(Reuters) – Nvidia Corp on Thursday reported fourth-quarter profit above Wall Street estimates, sending its shares up 9 percent in extended trading.
The company has entered into newer growth areas such as data centers, artificial intelligence and self-driving cars as it looks beyond its bread-and-butter business of selling chips that enhance video game graphics.
Nvidia has grown at a rapid pace in the past few years, but a slowdown in China and a fading cyrptocurrency craze have started to weigh on its operations.
Fourth-quarter total revenue fell to $2.21 billion from $2.91 billion, but came above its already lowered estimate of $2.20 billion.
The chip designer also forecast first-quarter revenue below Wall Street estimates on Thursday.
It now expects revenue of $2.20 billion, plus or minus 2 percent, for the quarter. Analysts on average were expecting revenue of $2.28 billion, according to IBES data from Refinitiv.
Excluding items, Nvidia earned 80 cents per share, above analysts’ estimates of 75 cents.
Reporting by Sonam Rai in Bengaluru; Editing by Anil D’Silva