Shares of Nvidia Take Off With A Sharp Jump in Data-center Business
Shares of Nvidia Corp. surged noticeably more than 10 percent in after-hours trading on Tuesday after the gaming company reported earnings easily beat estimates and that its can move beyond the core gaming business and find success elsewhere.
The California-based technology company posted net income of $507 million, or 79 cents a share, on sales of $1.94 billion, which were much higher than economists’ expectations calling for earnings of 66 cents a share on sales of $1.91 billion.
However, revenue from its core videogame segment produced less revenue than expected in the first quarter of its 2018 fiscal year. Nvidia’s gaming business was reported to produce $1.03 billion in gaming sales against average forecasts of $1.13 billion.
However, thanks to Nvidia’s artificial-intelligence advances, shares of the company jumped drastically. Nvidia reported more than $400 million in quarterly revenue for the data-center business and better-than-expected performance from the segment focused on self-driving cars and other automotive efforts.
Buy Stop at 113.80, Take profit 115.00, Stop loss at 113.20