By Chris Lau for Kapitall. Investors should appreciate the growth from PC graphics chipmaker NVIDIA (NVDA). As PC sales fall steadily, NVIDIA is branching out into other businesses. With shares rallying 8.82 percent after quarterly results, are new highs possible for NVIDIA? NVIDIA reported second quarter earnings that beat consensus by $0.02 per share. It earned $0.22 per share on revenue of $1.1 billion. Revenue grew 12.6 percent from last year, thanks to higher gross margin. Profitability was better especially from graphics chips. Though falling PC sales are always a concern for investors, NVIDIA refreshed its chip line-up. Last quarter, PC sales benefited from a refresh from Microsoft’s (MSFT) Windows XP. Intel’s (INTC) strong quarterly results were due from consumers, and to a bigger extent, businesses, upgrading PC systems. When NVIDIA announced Pascal as the architectural successor to Maxwell, the stable PC market helped the chip maker generate better graphics card sales. Intel is outperforming both NVIDIA and AMD (AMD). NVIDA could still have room to catch up in the months ahead. Sales of Tegra, NVIDIA’s mobile solution, were better last quarter. The solution is benefiting from strong sales in the automotive sector. Valuation risks Upside for NVIDA could be limited in the short term. The stock now trades at close to 15 times earnings in fiscal 2015. In contrast, Intel’s forward P/E is around 14. Due to such risks, investors might want to wait for profit taking or a general market correction to pull down shares before starting a position in NVIDIA. Disclosure: Author holds a long position in shares of AMD. Click on the interactive chart to view data over time. 1. Advanced Micro Devices, Inc. ( AMD): Operates as a semiconductor company in the United States, Japan, China, and Europe. Market cap at $2.82B, most recent closing price at $3.71.