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Nvidia Q3 Revenue and Profits Higher Than Expected

Nvidia has beaten analyst estimates for the third quarter thanks to high demand for its gaming chips.

The company reported revenues of $1.07 billion and profits of $178.3 million for the third quarter of 2011. Revenue generated by the company represented a 26 percent increase over the revenue from last year's third quarter while profits were up by an astonishing 110 percent, according (opens in new tab) to the Times of India.

Nvidia attributed the exceptional financial results to rising sales of its GPU system and Tegra 2 system.

"Our GPU business accelerated in the third quarter, driven by strong demand from gamers and the professional market. And our mobile business benefited from new devices coming onto the market. With Tegra 3 phone wins well ahead of Tegra 2's pace, we're expecting strong growth in the year ahead," said Jen-Hsun Huang, president and CEO of Nvidia.

The company reported a 14 percent rise in its consumer products division, which includes the Tegra offering and added that it expected Tegra to generate $1 billion in revenue in 2012. Meanwhile, the GPU division saw an increase of 1 percent over the second quarter.

For the next quarter, the company said revenue will be up or down 2 percent from third quarter revenue.