Nvidia sees Q4 revenue above Street estimates

By Ian Sherr

SAN FRANCISCO (Reuters) - Graphics chipmaker Nvidia Corp forecast fourth quarter revenue above Wall Street expectations, and said its new server and mobile chips were gaining momentum.

Its shares rose 6 percent in after-hours trading.

The company, which also benefited from strong spending among consumers on its core graphics cards, said on Thursday, that its high-end server and mobile computing platforms -- Tesla and Tegra, respectively -- were quickly gaining momentum.

"We invested for quite a long time in this area we call mobile computing, and we were certain that the vast majority of us are going to demand computing everywhere," said Nvidia Chief Executive Jen-Hsun Huang, adding that the Tegra mobile platform is doubling every quarter off its small base. "This is an investment that is starting to come home to roost."

The company expects fourth-quarter revenue to be up about 2 percent from the third quarter, well above Wall Street's expectations.

The company said its GAAP gross margin is expected to be in the range of 40 percent to 42 percent -- versus the average Wall Street forecast of 40 percent -- while GAAP operating expenses should be an in-line $305 million.

The chip sector as a whole has been lifted by increased consumer demand, particularly during the previous quarter's back-to-school shopping season. That has helped tech heavyweights such as Intel Corp (INTC.O: Quote, Profile, Research) and Apple Inc post earnings well above Wall Street expectations.

"Our growth was almost across every segment of our business," Nvidia Chief Financial Officer David White told Reuters in an interview, adding that most of the company's growth came from consumer spending.