Nvidia's adjusted earnings of $1.33 per share topped forecasts of 95 cents per share, according to analysts surveyed by FactSet. Revenue increased 32% to $2.64 billion, exceeding forecasts of $2.37 billion and marking a record. The company also told investors that fourth quarter sales would come to about $2.65 billion, ahead of Wall Street's consensus of $2.44 billion.
Nvidia stock gained 2.45% after hours to $210.36 per share. The stock is up more than 92% this year.
Gaming continues to be Nvidia's biggest money maker, with sales increasing 25% from a year ago to $1.56 billion.
"People want to win and having better gear helps," founder and CEO Jensen Huang said of sales of its gaming GPUs, adding that launch of new, sophisticated games drive adoption.
"A wave of great titles is arriving for the holidays," Chief Financial Officer Colette Kress said, pointing to Activision Blizzard's (ATVI) - Get Report Destiny 23, PlayerUnknown's Battlegrounds, Call of Duty WWII and Star Wars: Battlefront II.
The fan base for e-sports exceeds 350 million, Kress said, with the League of Legends championships in the Beijing's Bird's Nest stadium last week highlighting the growing global demand.
Data centers are Nvidia's fastest growing market, with sales increasing 109% to just more than $500 million.
Nvidia began shipping its powerful Tesla V100 server GPU in the second quarter, the first chip based on its next-gen Volta architecture, and sales ramped up in the third quarter.
"Every major cloud provider from Amazon (AMZN) - Get Report , Microsoft (MSFT) - Get Report , Google (GOOGL) - Get Report to Baidu, Alibaba (BABA) - Get Report Tencent (TCEHY) and even recently Oracle (ORCL) - Get Report has announced support for Volta," Huang said.
"Every major server maker in the world now supports Volta," he added, citing Dell (DVMT) , Hewlett Packard Enterprise (HPE) - Get Report , IBM (IBM) - Get Report , Cisco (CSCO) - Get Report , Huawei, Lenovo and others.
Automotive is comparably small, with sales growing 13% to $144 million in the quarter, but represents an outsized opportunity.
"Everything that moves will be autonomous one day," Huang said, from buses and taxis to robots in warehouses and machines that deliver pizzas.
The company announced its Pegasus AI platform for self-driving cars in October. Huang told investors that the system performs over 320 trillion operations per second.
Nvidia aims to power self-driving taxis with the Pegasus platform, and has partnerships with companies around the world. Global logistics company DHL will deploy a test fleet of autonomous delivery trucks using Nvidia's technology next year, the company said.
While next year will focus on the development of self-driving car technology, Huang suggested that robo taxis will appear the following year and autonomous cars will become more common a year or two later.
Alphabet, Nvidia and Activision Blizzard are holdings in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells GOOGL, NVDA or ATVI? Learn more now.
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