The maker of graphics chips, Nvidia is forecasting higher sales than analysts predicted.
It appears that the outfit has stolen some market share from its rival AMD and stock soared as much as 21 percent in extended trading.
Nvidia said in a statement that third-quarter revenue will rise four percent to six percent from the second quarter. This means that it flogged more than $1.08 billion of its products. Wall Street thought that it would make only $1.05 billion.
Mercury Research analyst Dean McCarron told Bloomberg that Nvidia was wooing customers away from AMD having invested in a large supply of Woo in recent months.
The outfit has started winning more orders for its Tegra processors from makers of mobile phones. Samsung sung that it would use the Tegra 2 processor in its new Galaxy R smartphone for the first time. Motorola and LG have also signed up.
Patrick Wang, an analyst at Evercore Partners said that in the last month things changed for Nvidia. It was really aggressive in shipments of discrete graphics chips for desktops.
This is ironic as Nvidia Chief Executive Officer Jen-Hsun Huang has stated that he wants to lessen Nvidia’s dependence on chips used in PCs and push into mobile phones and tablet gear.
But the boost in PC sales is more to do with Nvidia’s success at elbowing its way into developing markets. PC sales have been slack in the US and EU but have been growing like crazy in India and China.