Nvidia Gives Strong Outlook as Data Center Owners Spend More
- Stock surges after sales of server and gaming chips jump
- Company says Mellanox purchase likely to close in early 2020
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Nvidia Corp. gave a strong revenue forecast for the current period, spurred by increasing demand for data-center and gaming chips.
Revenue will be $3 billion, plus or minus 2%, in the fiscal first quarter, the Santa Clara, California-based company said Thursday in a statement. That compares with an average analyst estimate of $2.84 billion. Gross margin, or the percentage of sales remaining after deducting the cost of production, will be 65%, plus or minus 50 basis points.