Following a recall of some of its Shield tablets last week, Nvidia published solid second quarter financial results after the bell on Thursday.
The hardware giant reported a net income of $26 million, or five cents per share (statement).
Non-GAAP earnings were 34 cents per share on a revenue of $1.153 billion, up five percent year-over-year.
Wall Street was looking for earnings of 10 cents per share with $1.01 billion in revenue.
Nvidia highlighted revenue growth for two verticals in particular: gaming and automotive tech.
The GeForce GTX GPU series alone -- primarily utilized for sports gaming titles -- is touted to now have an estimated 130 million viewers. The GeForce Experience PC gaming platform has also grown to 65 million users, up from 38 million a year earlier.
"Our gaming platforms continue to be fueled by growth in multiple vectors -- new technologies like 4K and VR, blockbuster games with amazing production values, and increasing worldwide fan engagement in e-sports," wrote Nvidia CEO and president Jen-Hsun Huang, in prepared remarks.
Huang added Nvidia is now collaborating with more than 50 companies on Nvidia's Drive venture for self-driving cars.
The company chief also exhibited excitement for enterprise graphics and cloud initiatives as Nvidia's business customer base has more than tripled in one year to over 300 enterprises. Nvidia further boasted that more than 3,300 companies are using its technologies to explore deep learning, such as speech recognition, image analysis and translation capabilities.
However, Nvidia's Q2 report had a few dents here and there. The company's Quadro GPUs for PCs declined, to which Nvidia blamed "decline in overall consumer PCs."
Tegra processor revenue also dropped -- by 19 percent from a year ago -- under pressure from smartphones and tablets. But the decline was said to be offset by growth for Nvidia's car infotainment systems and Shield devices.
For the current quarter, Wall Street is looking for non-GAAP earnings of 18 cents per share with $1.10 billion in revenue.
Nvidia followed up with a slightly stronger outlook, expecting $1.18 billion in revenue for Q3, plus or minus two percent.