VentureBeat

Graphics chip maker Nvidia reported good third fiscal quarter results thanks to the continuing recovery of the personal computer market. The company reported today that revenues came in at $903.2 million for its third fiscal quarter, compared to analysts’ expectations of $838.1 million. Earnings per share were 19 cents, compared to an expected 10 cents a share.

The Santa Clara, Calif.-based company’s shares were up 6 percent in after-hours trading. Nvidia predicted that fourth quarter revenues (for the period that closes at the end of January) would be up 2 percent from the third quarter. That was also above what Wall Street expected. Nvidia’s chips are used in desktop computers, laptops, graphics workstations, servers and game consoles. It new Tegra chip is the brain of Microsoft’s new Zune HD music handheld.

The company is enjoying a recovery in the PC market as well as the overall chip sector. Consumer demand, including a strong back-to-school shopping season, helped push revenues higher. Growth was strong in every segment of Nvidia’s business, said David White, chief financial officer. Third quarter net income was $107.6 million, up from $61.7 million a year ago. Revenues a year ago were $897.7 million.

While the rising industry tide is lifting Nvidia, it faces tough competition from Advanced Micro Devices, which launched a new generation of graphics chips in September. Nvidia hasn’t yet launched its new chip, code-named Fermi. That could lead to a loss in market share. In that sense, Nvidia is lucky there’s an industry recovery now.

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