Why NVIDIA Popped
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What: Shares of graphics specialist NVIDIA (NAS: NVDA) have popped today by upwards of 10% after the company posted an upbeat earnings release coupled with better-than-expected guidance.
So what: Revenue in the quarter came out to $924.9 million, with adjusted net income of $97.5 million, or $0.16 per share. The Street would have settled for just $916.2 million in sales and a dime per share in profits, letting NVIDIA register an earnings beat. CEO Jen-Hsun Huang said the company's new Kepler GPUs are boosting business and Tegra growth is on track.
Now what: Guidance for next quarter calls for sales between $990 million and $1.05 billion, topping analyst forecasts of $976 million. NVIDIA pointed out that the first Ultrabook carrying one of its GPUs was launched in March, while the first quad-core Tegra 3 also saw a debut in February. Huang is also excited by the upcoming launch of Microsoft Windows 8 on ARM, as it hopes its Tegra chips will gain additional traction there.
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At the time this article was published Fool contributorEvan Niuholds no position in any company mentioned.Click hereto see his holdings and a short bio. The Motley Fool owns shares of Microsoft.Motley Fool newsletter serviceshave recommended buying shares of Microsoft and NVIDIA.Motley Fool newsletter serviceshave also recommended writing puts on NVIDIA and creating a bull call spread position in Microsoft. The Motley Fool has adisclosure policy. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.