Nvidia Boosts Revenue Guidance

The stock shoots higher after hours.
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Nvidia's

(NVDA) - Get Report

fourth quarter was a bit brighter than the company expected.

The graphics-chip maker now expects its revenue for the quarter ended Jan. 30 to come in around $560 million to $570 million. Meanwhile, the company expects to post a gross profit margin of 33.5% to 34.5% of sales.

Previously, the company had

forecast that it would see about $516 million in sales in its just-completed quarter and gross margins of about 33.3% of sales. Strong sales of and market share gains by its line of GeForce 6 chips offset an expected $70 million sequential decline in revenue from

Microsoft's

(MSFT) - Get Report

Xbox game console.

The company didn't give earnings guidance, but the new revenue outlook is far above Wall Street's estimates.

On average, analysts polled by Thomson First Call were expecting Nvidia to post a profit of 16 cents a share on sales of $518.25 million for its just-completed quarter. The company will announce its fourth-quarter results on Feb. 17.

Nvidia's announcement came after the bell on Tuesday. The company's shares jumped about 5.5% after hours; they closed regular trading up 43 cents, or 1.9%, to $23.35.