Chipmaker Nvidia predicts strong revenue AI, metaverse buzz | New Technologies

The world’s largest maker of graphics and AI chips expects fourth-quarter revenue to grow above analysts ’expectations.

Nvidia Corp on Wednesday projected fourth-quarter revenue above Wall Street forecasts, betting on the growth of its data center business as more Internet companies began investing in artificial intelligence and metaverse.

The company’s shares rose nearly 4 percent in extended trading. They have more than doubled this year.

The world’s largest maker of graphics and AI chips expects revenue of $ 7.4 billion in the current quarter, up 2 percent or minus, above analysts ’average estimate of $ 6.86 million, according to Refinitiv’s IBES data.

The Coronavirus pandemic increased the demand for graphics chips used in game consoles and computers, as consumers who stayed at home spent more time playing video games, even with the help of cryptocurrency miners. The company is also benefiting from recent efforts, such as artificial intelligence chips and autonomous vehicles used in data centers.

In the third quarter reported, Nvidia’s gaming unit revenue rose 42 percent to $ 3.22 million and data centers rose 55 percent to $ 2.94 million.

Analysts expected $ 3.13 million and $ 2.75 million, respectively, for games and data centers, according to FactSet.

Overall, revenue rose about 50 percent in the three months ended Oct. 31 to $ 7.10 million, above the $ 6.83 million average estimate, according to Refinitiv’s IBES data.