Nvidia surges as Q4 results top expectations, led by gaming recovery
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Nvidia (NASDAQ:NVDA) shares rose more than 8% in extended-hours trading after the semiconductor giant posted fiscal fourth-quarter results that beat expectations, thanks to a rebound in its gaming unit.
For the period ending January 29, Nvidia (NVDA) earned an adjusted 88 cents per share as revenue fell 21% year-over-year to $6.05B. Included in that was $1.83B from gaming-related revenue, up 16% sequentially, as it recovers from highs seen during the pandemic.
"Gaming is recovering from the post-pandemic downturn, with gamers enthusiastically embracing the new Ada architecture GPUs with AI neural rendering," CEO Jensen Huang said in a statement accompanying the results.
The company said data center sales clocked in at $3.62B during the period, up 11% year-over-year.
Huang also touched on the rise of generative AI, which has attracted significant attention from the media and investors alike, stating it is at an "inflection point" that will have "broad adoption reaching into every industry."
Also included in Nvidia's (NVDA) fourth-quarter revenue figure was $226M from professional visualization revenue and $294M from automotive and embedded.
Analysts were expecting the chip maker to report earnings 80 cents per share and $6.02B in revenue. 
Looking ahead, Nvidia (NVDA) said it expects first-quarter sales to $6.5B, plus or minus 2%. Analysts expect the company to report $6.35B in sales.
Nvidia (NVDA) added that it expects adjusted operating expenses to be roughly $1.78B during the period and adjusted gross margins to be 66.5% during the period, plus or minus 50 basis points.
The company will host a conference call at 5 p.m. EST to discuss the results.
On Tuesday, Microsoft announced that it had signed a deal with Nvidia (NVDA) to bring its Xbox PC games to Nvidia's GeForce Now streaming service.