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Nvidia tops Q1 targets as revenue nearly doubles

Nvidia said sharp growth of its deep learning technology helped accelerate revenue growth in the quarter.

Graphics chipmaker Nvidia reported solid first quarter financial results Tuesday.

The Santa Clara, Calif.-based company reported a net income of $507 million, or 79 cents per share.

Non-GAAP earnings were 85 cents per share on revenue of $1.94 billion, up 48 percent year-over-year.

Wall Street was looking for earnings of 67 cents per share with $1.91 billion in revenue. Nvidia's share rose more than 13 percent in late trading.

Nvidia founder and CEO Jensen Huang credited the strong quarter on the accelerated adoption of AI technology and the success of Nvidia's GPU deep learning platform across business segments.

"Our Datacenter GPU computing business nearly tripled from last year, as more of the world's computer scientists engage deep learning. One industry after another is awakening to the power of GPU deep learning and AI, the most important technology force of our time," he said.

Nvidia has focused vigorously on AI and deep learning. The company announced Tuesday morning that it plans to train 100,000 developers through its Deep Learning Institute. The effort is seen as a way for Nvidia to create a well of expertise that can ultimately lead to more sales of GPUs. On Monday the company introduced Metropolis, a platform that aims to provide deep learning analytics to video streams produced from smart city applications.

Looking ahead to the current quarter, Nvidia expects revenue of $1.95 billion, plus or minus two percent. Analysts are looking for revenue of at least $1.89 billion.