Nvidia sees mobile chips boosting Q1 revenue

SAN FRANCISCO, USA: Chip designer Nvidia Corp posted fourth-quarter revenue below expectations and said revenue would increase 6 to 8 percent sequentially in the current quarter, when sales of its new Tegra 2 mobile chips are expected to ramp up.

Nvidia said revenue for the fiscal fourth quarter was $886 million, down 9.8 percent from the year-ago period.

Analysts on average had expected fourth-quarter sales of $892 million.

Nvidia's forecast implies revenue of $$940 million to $957 million in the first quarter. Analysts on average had expected $889 million of revenue in the first quarter.

Shares of Santa Clara-based Nvidia rose 1.6 percent in after-hours trade after closing up 3.68 percent at $23.38 on Nasdaq.

The company, long known for designing high-performance graphics cards favored by gamers, reported GAAP net earnings of $172 million, or 29 cents a share, for the quarter ended Jan 30, compared with a net profit of $131 million, or 23 cents a share, in the year-ago period.