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Nvidia's Gaming, Data Center and Auto Chips Power Record Third Quarter

The need for greater power and speed in gaming computers, data centers and smart cars drove Nvidia's (NVDA - Get Report) record third-quarter results, the company said after the close on Thursday.

Nvidia's adjusted earnings of $1.33 per share topped forecasts of 95 cents per share, according to analysts surveyed by FactSet. Revenue increased 32% to $2.64 billion, exceeding forecasts of $2.37 billion and marking a record. The company also told investors that fourth quarter sales would come to about $2.65 billion, ahead of Wall Street's consensus of $2.44 billion.

Nvidia stock gained 2.45% after hours to $210.36 per share. The stock is up more than 92% this year.

Gaming continues to be Nvidia's biggest money maker, with sales increasing 25% from a year ago to $1.56 billion.

"People want to win and having better gear helps," founder and CEO Jensen Huang said of sales of its gaming GPUs, adding that launch of new, sophisticated games drive adoption.

"A wave of great titles is arriving for the holidays," Chief Financial Officer Colette Kress said, pointing to Activision Blizzard's (ATVI - Get Report) Destiny 23, PlayerUnknown's Battlegrounds, Call of Duty WWII and Star Wars: Battlefront II.

The fan base for e-sports exceeds 350 million, Kress said, with the League of Legends championships in the Beijing's Bird's Nest stadium last week highlighting the growing global demand.

Data centers are Nvidia's fastest growing market, with sales increasing 109% to just more than $500 million.

Nvidia began shipping its powerful Tesla V100 server GPU in the second quarter, the first chip based on its next-gen Volta architecture, and sales ramped up in the third quarter.

"Every major cloud provider from Amazon (AMZN - Get Report) , Microsoft (MSFT - Get Report) , Google (GOOGL - Get Report) to Baidu, Alibaba (BABA - Get Report) Tencent (TCEHY) and even recently Oracle (ORCL - Get Report) has announced support for Volta," Huang said.