This article originally appeared on Real Money on Nov. 10, 2016.
A lot had already been priced into Nvidia's (NVDA) shares going into the company's fiscal third-quarter report on Thursday. But apparently not enough.
Several analysts dialed their estimates sharply higher after the latest results, and they may also have to re-think just how big Nvidia's long-term addressable market is.
The GPU giant reported third-quarter revenue of $2 billion (up 54% annually) and EPS of 83 cents, trouncing consensus analyst estimates of $1.69 billion and 60 cents. It also guided for fourth-quarter revenue of $2.1 billion (plus or minus 2%), well above a $1.69 billion consensus and implying 50% annual growth at the midpoint.
Shares spiked after hours on Thursday and were up 22% Friday morning to $82.73, surging to new highs and now up 151% on the year. With a current market cap of $44 billion, only four U.S.-traded chipmakers -- Intel (INTC) , Qualcomm (QCOM) , Broadcom (BRCM) and Texas Instruments (TXN) -- are worth more than Nvidia. GPU rival AMD (AMD) was up 4.4% to $6.57 on Friday.
Though Nvidia's report features several eye-popping sales growth figures, none arguably top the 193% increase in Nvidia's data center product sales to $240 million (12% of revenue). That's easily better than the second quarter's 110% growth and the first quarter's 63%.