Nvidia easily beats Q3 earnings expectations with strong Q4 outlook

Amid a shining Q3 report, Nvidia CEO Jen-Hsun Huang stressed progress for building specialized visual computing platforms.

Nvidia published third quarter financial results after the bell on Thursday, and the tech brand best known for its gaming hardware looks to be sailing smoothly into the holiday season already.

The graphics chip maker reported a net income of $246 million, or 44 cents per share (statement).

Non-GAAP earnings were 46 cents per share on a revenue of $1.305 billion, up seven percent year-over-year.

Wall Street was looking for earnings of 25 cents per share with $1.18 billion in revenue.

Touting the "record results" while hinting at Nvidia's long-term strategy going forward, Nvidia CEO Jen-Hsun Huang stressed progress for building specialized visual computing platforms.

"Virtual reality, deep learning, cloud computing and autonomous driving are developing with incredible speed, and we are playing an important role in all of them," Huang wrote, in prepared remarks.

Although most of Nvidia's notable releases last quarter revolved around more powerful graphics and entertainment platforms for gaming and cars, the Silicon Valley corporation also made headwinds in the data center.

In August, Nvidia bolstered its Grid platform for virtual desktops and applications with the debut of version 2.0, promising both the delivery of the most graphics-intensive apps ever as well as double both the performance and user density than its predecessor, now allowing up 128 users per server.

Nvidia also announced it tapped Microsoft Azure as the first cloud-services provider to offer GRID 2.0 capabilities and accelerated computing.

For the current quarter, Wall Street is looking for non-GAAP earnings of 28 cents per share with $1.21 billion in revenue.

Nvidia followed up with a Q4 revenue projection of $1.30 billion, plus or minus two percent.