The artificial intelligence company that provides solutions for gaming platforms, Nvidia, delivered better-than-expected results for fiscal Q3 2021, characterized by record revenue.

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Earnings and revenue were largely driven by growth in the Gaming, Data Center, and Professional Visualization market and topped consensus estimates.

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On Thursday, Nvidia (NASDAQ:NVDA) shares jumped 8.3% to close at $316.75. The Dow Jones Industrial Average was down 0.2%, while the S&P 500 was up 0.3%. It was a record close for Nvidia, bringing its market value to about $791.9 billion.

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Raymond James Analyst wrote: “In the near-term, NVDA’s revenue has only been constrained by supply and increased supply availability. And increasing supply is boosting revenue.”

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Caso wrote that the graphics card maker crushed analyst expectations for its fiscal third quarter. He raised his price target from $225 to $365 and maintained a Strong Buy rating following Nvidia’s earnings release on Wednesday.  

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RESULTS & OUTLOOK

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Nvidia delivered a record quarterly revenue of $7.10 billion, up 50% year-over-year exceeding consensus estimates of $6.83 billion. The Gaming unit posted record revenue of $3.22 billion, while Data Center revenue grew to $2.94 billion, up 42% and 55%, respectively.

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Moreover, the Professional Visualization segment posted revenue of $577 million, and the Automotive segment delivered a revenue increase of 8% year-over-year to $135 million. During the quarter, Nvidia paid cash dividends amounting to $100 million and expects revenue of $7.40 billion, plus minus 2% for Q4.

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It also expects non-GAAP gross margins of 67%. In recent weeks, the stock had a sky-high bar set by the company’s surging valuation. Analysts and investors believe that the metaverse will provide Nvidia with a multi-billion dollar opportunity to supply chips to power virtual world graphics.

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CEO Jensen Juang said the company’s data center business is benefiting from the growth of the cloud-computing market, as well as “broadening adoption” of its artificial intelligence technology “by more than 25,000 companies”.  

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