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The Santa Clara, Calif.-based company reported 2020 fiscal third quarter earnings of $1.78 per share on revenue of $3.01 billion. Analysts were expecting the company to report earnings of $1.58 per share on revenue of $2.92 billion.
However, for the fourth quarter, the company expects revenue to be about $2.95 billion versus expectations of $3.06 billion. Gross margins are expected to be about 64.5% compared to gross margins in the third quarter of 64.1%.
Nvidia shares had risen as much as 2% after hours but were recently down 0.5% to $208.72.
"Our gaming business and demand from hyperscale customers powered Q3's results," said CEO Jensen Huang in a press release. "The realism of computer graphics is taking a giant leap forward with NVIDIA RTX."
Despite the beat, those totals were still below the $3.18 billion in revenue and $1.84 per share in earnings the company reported a year ago. The company said that it expects "strong data center growth ahead" which will be driven by "the rise of conversational AI and inference."
Analysts and investors were paying the most attention to the company's data center results and trajectory as the segment has been negatively pressured in recent quarter.
"This quarter, we have laid the foundation for where AI will ultimately make the greatest impact," Huang said. "We extended our reach beyond the cloud, to the edge, where GPU-accelerated 5G, AI and IoT will revolutionize the world's largest industries. We see strong data center growth ahead, driven by the rise of conversational AI and inference."
Nvidia also announced a cash dividend of 16 cents per share payable Dec. 20 to shareholders of record on Nov. 29.