Nvidia's Q2 results strong courtesy of Tegra sales

Nvidia design wins for Google's Nexus 7 tablet and Microsoft's Surface tablet highlighted momentum for the company's Tegra processor.

Nvidia reported better-than-expected second quarter results and said that its Tegra chips delivered record sales.

The graphics processor company reported second quarter earnings of $119 million, or 19 cents a share, on revenue of $1.04 billion. Non-GAAP earnings for the quarter were 27 cents a share.

Wall Street was expecting Nvidia to report second quarter earnings of 14 cents a share on revenue of $1.01 billion.

Jen-Hsun Huang, CEO of Nvidia, was upbeat about the company's prospects.

Tegra has achieved record sales as tablets come into their own. Our GPU business made strong gains in a weak market, boosted by our Kepler architecture. Looking ahead, we're optimistic.

Indeed, Nvidia's Tegra 3 processor powers Google's Nexus 7 tablet as well as Microsoft's upcoming Surface device.

As for the outlook, Nvidia projected third quarter revenue between $1.15 billion to $1.25 billion. Wall Street was expecting third quarter revenue of $1.09 billion. Margins in the third quarter are expected to be flat, or about 52 percent, with the second quarter.