Nvidia shares rally on earnings beat

Nvidia Corp. shares rose in the extended session Thursday after the chip maker topped Wall Street expectations for the quarter even as data-center sales came in weaker than expected.

Nvidia NVDA, -0.87%  shares rose 6.3% after hours, following a 0.9% decline in the regular session to close at $148.77. In comparison, the PHLX Semiconductor Index SOX, -0.23% fell slightly, the S&P 500 index SPX, +0.25% rose 0.2%, and the tech-heavy Nasdaq Composite Index COMP, -0.09% was about flat.

The company reported second-quarter net income of $552 million, or 90 cents a share, compared with $947 million, or $1.54 a share, in the year-ago period. Adjusted earnings were $1.24 a share.

Revenue declined to $2.58 billion from $3.12 billion in the year-ago quarter.

Analysts surveyed by FactSet had forecast earnings of $1.15 a share on revenue of $2.55 billion.

Revenue from gaming, Nvidia’s largest business, declined 27% to $1.31 billion, while analysts were expecting $1.3 billion. Data-center revenue slipped 14% from a year ago to $655 million while Wall Street was expecting $668.5 million.

Nvidia expects third-quarter revenue of $2.84 billion to $2.96 billion, while analysts expect $2.98 billion.

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