Nvidia (NASDAQ:NVDA) jumped to the highest in seven years after the largest maker of graphics chips used for personal-computer games forecast sales that may exceed analysts’ estimates on demand for its hardware.
Shares rose 13.2% to $31.39 at 10:14 a.m. in New York after reaching $31.40, the highest intraday price since 2008.
Revenue in the quarter ending in January will be $1.3bn, plus or minus 2%, the Santa Clara, California-based company said in a statement on Thursday.
That compares with analysts’ average estimate of $1.21bn, according to data compiled by Capital IQ.
Net income in the fiscal third quarter, which ended in October, was $246mln, or $0.44 per share, compared with $173mln, or $0.31 per share, a year earlier.
Profit, excluding certain costs, was $0.46 per share, compared with analysts’ estimates of $0.35.
Sales rose 6.5% to $1.31bn, against estimates of $1.18bn.
Nvidia also said it would lift its quarterly cash dividend 18% to 11.5 cents per share.