Nvidia Socks It to Wall Street, Q2 Revenue Beats Expectations

Paul Lilly

Investors are reacting to Nvidia's financial report for its second quarter of its fiscal year 2012, and doing so in a good way. Shares of Nvidia stock rose by as much as double digits today after Nvidia reported a 5.7 percent bump in revenue over last quarter, which rose from $962 million to $1.02 billion. Even more impressive is the year-over-year comparison, in which Nvidia's revenue is up over 25 percent.

"We grew solidly this quarter," said Jen-Hsun Huang , Nvidia president and chief executive officer. "Consumer demand for notebooks powered by our GeForce GPU, with its unique Optimus technology, resulted in record revenue for these products."

Never one to mince words, the outspoken CEO was clear that "The future of computing is mobile and visual," and for that, Nvidia is banking on its Tegra platform. That also happens to be the one area investors were able to criticize.

"We wonder when Tegra finally catches a wave and delivers the robust growth investors had been waiting for," brokerage firm Evercore Partners wrote in a note to investors, according to Reuters . Evercore downgraded Nvidia's stock target from $12 to $11 and said it was "surprsing" to see Nvidia not making a bigger deal of Tegra's future.

Nvidia did, however, note that its partners launched six new Tegra-powered "superphones" in Q2, up from two in Q1, as well as four new tablets.

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