Its better-than-expected results were largely attributed to growth in consumer sales, which continue to rise, helped by increased Tegra demand. Nvidia continues to steal market share from Advanced Micro Devices ( AMD) in graphic chips even as Intel ( INTC) said a month earlier that it was hurt by rising inventories. In terms of guidance, the company expects Q4 revenue to come in the range of $1.03 billion to $1.18 billion. While this might be slightly lower than analysts' estimates of $1.21 billion, it will represent annual growth of over 20%. Nvidia ended the call announcing to investors its plans to pay the first-ever dividend in the company's history. The payout of 7.5 cents per share will begin Dec. 14, while also extending its current share-repurchase program by an additional two years through 2014.
Another area that stood out during the quarter was the reversal of what once seemed a margin depreciation. That gross margins jumped over 1 point was indeed impressive and suggests that even as the company spends to transform its business, it keeps a focus on profitability. That said, as good as I feel about Nvidia's ability to transform itself, I don't expect Qualcomm, Texas Instruments or Intel ( INTC) to make this an easy transition. Anyone wanting to place a bet on Nvidia at this point should feel pretty good about its prospects -- even as its PC business slowly erode. The market knows this and so does Nvidia. But at current levels, I think the risk-reward tradeoff favors Nvidia. And it is not too unrealistic to expect the stock to trade in the $15-to-$20 range over the next 12 to 16 months. At the time of publication, the author was long AAPL and held no position in any of the other stocks mentioned. Follow @rsaintvilusThis article is commentary by an independent contributor, separate from TheStreet's regular news coverage.