NVIDIA (NVDA 211.21, +5.89) has jumped 2.9% in pre-market after beating third quarter expectations and issuing above-consensus guidance for the fourth quarter.
The high-flying chipmaker reported above-consensus third quarter earnings of $1.33 per share on a 31.5% year-over-year spike in revenue to $2.64 billion, which also exceeded expectations.
Looking to satisfy sky-high expectations, NVIDIA raised its quarterly dividend 7.0% to $0.15 per share and announced it plans to buy back $900 million worth of shares before the end of the fiscal year. In fiscal year 2019, the company plans to return $1.25 billion to shareholders through dividends and share repurchases.
Gross margin increased to 59.7% from 59.2% one year ago.
The company recorded year-over-year growth across its five segments while four of five segments also showed sequential growth. Gaming revenue jumped 25.5% year-over-year to $1.56 billion. On a sequential basis, Gaming revenue grew 31.6%.
Professional Visualization revenue rose 15.5% year-over-year to $239 million, which translated to quarter-over-quarter growth of 1.7%.
Datacenter revenue increased 108.8% year-over-year to $501 million and grew 20.4% sequentially.
Auto revenue rose 13.4% year-over-year to $144 million, increasing 1.4% quarter-over-quarter.
OEM & IP revenue grew 2.7% year-over-year to $191 million, but declined 23.9% quarter-over-quarter with seasonal factors contributing to the drop.
NVIDIA noted that its Volta GPU has been adopted by major datacenter and cloud service providers while the DRIVE PX Pegasus robotaxi platform has also enjoyed strong demand, setting expectations for continued growth.
Looking ahead, NVIDIA expects that fourth quarter revenue will be between $2.60 billion and $2.70 billion, which is ahead of market expectations. Non-GAAP gross margin is expected between 59.5% and 60.5%.