By Dhirendra Tripathi
Investing.com – Nvidia stock (NASDAQ:NVDA) jumped 6% in Thursday’s premarket trading as the chipmaker’s sales and profit raced past estimates in the third quarter.
Data centers and gaming led the momentum in the third quarter, much the same way they have over the last several quarters, driven by the pandemic-induced shifts in work and leisure practices. Demand for gaming has boomed while data centers have expanded as businesses and consumers make online an integral part of their lives. With those trends showing little sign of waning, the company's outlook was accordingly optimistic.
The company said revenue in the fourth quarter should hit $7.4 billion, after rising 50% year-on-year to $7.1 billion in the quarter ended October 31. The company largely overcame the supply chain problems that have plagued other manufacturers in the industry.
Revenue from data centers was a record $2.94 billion and so were $3.22 billion in sales of gaming chips, the two segments growing 55% and 42%, respectively.
The company is now training its eyes on the so-called metaverse, a term for interconnected virtual worlds. The company’s software platform, Omniverse, enables 3D online spaces.
With Meta Platforms (NASDAQ:FB) (previously known as Facebook) and others betting billions on the virtual space, Nvidia expects large revenues from applications that need more computing power.
The company last month released Omniverse Enterprise, a set of software tools that will enable collaboration among companies to build virtual worlds, where the computing power comes from Nvidia's chips.