(Bloomberg) -- Nvidia Corp., the most valuable US semiconductor maker, posted quarterly sales that topped analysts’ estimates after its data-center business helped offset sluggish demand for video-game chips.
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Though revenue declined 17% to $5.93 billion in the fiscal third quarter, that handily beat the $5.79 billion average estimate. That helped send the shares up more than 1% in late trading.
Owners of large cloud-computing facilities are increasingly using Nvidia’s graphics chips to handle artificial intelligence tasks, and that business has held up better than the sputtering personal-computer market.
Nvidia announced further inroads into the data-center market earlier Wednesday, when it said that Microsoft Corp. will use its graphics chips, networking products and software for a new AI offering. Nvidia’s leadership has argued that its broad range of technology for such systems gives it an advantage over competitors with partial solutions.
But the company is caught up in the worsening standoff between China and the US. Washington is increasingly trying to cut off the Asian country from advanced chip technology, threatening Nvidia’s access to that market.
Nvidia’s best AI offerings are now subject to licensing requirements for export to China, a hurdle that the company said may cost it hundred of millions of dollars in lost revenue. Nvidia recently debuted a new offering for that market that it says is compliant with the restrictions.
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