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Nvidia earnings beat expectations, stock jumps

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Jen-Hsun Huang, president and chief executive officer of Nvidia Corp., gestures as he speaks during the company's event at the 2019 Consumer Electronics Show (CES) in Las Vegas, Nevada, U.S., on Sunday, Jan. 6, 2019. CES showcases more than 4,500 exhibiting companies, including manufacturers, developers and suppliers of consumer technology hardware, content, technology delivery systems and more. Photographer: David Paul Morris/Bloomberg via Getty Images

Graphics and data center chipmaker Nvidia (NVDA) announced Q1 fiscal 2020 earnings after the bell on Thursday, beating analysts’ expectations.

The company reported revenue of $2.2 billion, in line with analysts’ expectations. That’s well off of the $3.2 billion the company pulled in during the same quarter in 2019.

Earnings per share came in at $0.88 versus analysts’ estimates of $0.81 per share. In Q1 2019, the company saw earnings of $2.05 per share.

The stock is up 6% in after hours trading.

Nvidia’s recent troubles are tied to two major trends, the slowing Chinese economy and, more recently, tariffs, as well as an inventory overhang caused by a decrease in gaming graphics card sales.

Sales of cards were on fire in 2017 and early 2018 due to the rise of cryptocurrency miners. But as graphics cards have fallen out of favor with miners, Nvidia’s sales of plummeted, leaving inventory unmoved. That, though, is finally clearing up.

Nvidia has made a significant push into the artificial intelligence and machine learning industries thanks to its data center processing technologies, but the company still relies primarily on its gaming business for more than half of its revenue.

More from Dan:

Email Daniel Howley at dhowley@oath.com; follow him on Twitter at@DanielHowley. Follow Yahoo Finance on Facebook, Twitter, Instagram, andLinkedIn.finance.yahoo.com/

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