Nvidia recorded a jump of 55% in its data center sales amid growing demand for AI applications

Nvidia stock recorded a jump over 5% in its extended trading when the company reported its earnings for the third fiscal quarter beating the expectations for both earnings and revenue. The company also ended up issuing a bullish forecast for its revenue for the present quarter which would be ending in January 2022. The performance versus Refinitiv consensus expectations for the quarter demonstrated earnings USD 1.17, versus USD 1.11 which is expected, up 60%. Revenue was estimated at USD 7.10 billion versus USD 6.82 billion which was expected registering a growth of 50%. Nvidia stated that it is expecting to report USD 7.4 billion for the present quarter, which would be ending in January, which is way beyond the analyst expectations of USD 6.86 billion.

Nvidia stock has been on a roll, with shares soaring by 124% per year. The company has been witnessing more demand than it has to offer, especially across the hard-to-find GeForce graphics cards that have grown in popularity among gamers. The company has been registering significant growth in data centers, where cloud vendors and other major enterprises have started turning to the graphics processors just like Nvidia for AI applications. Nvidia has reported a USD 2.9 billion in data-center sales, which is up 55% from USD 1.8 billion for the same quarter compared to last year. 

Kress (CFO) stated that the customers have been using the chips for comprehending human speech and generating insights out of data to provide extensive customer recommendations. Gaming, which happens to be the biggest market for Nvidia, had reported USD 3.2 billion in revenue, which soared 42% from USD 2.27 billion. The company has attributed it the growing demand for its GeForce consumer graphics processors, however, the company stated that the supply chain still remains a challenge.