NVIDIA (NVDA) Beats Q2 Views on Strong Notebook GPU Demand; Q3 Outlook Strong

NVIDIA Corp. (Nasdaq: NVDA) shares are ripping higher after-hours following a strong second-quarter 2012 earnings beat from the graphics chip giant.

Revenue increased from $962 million to $1.017 billion, a 5.7 percent gain.

Net income rose 12 percent to $151.6 million, or 25 cents per share. Excluding certain items like stock-based compensation, amortization of acquisition-related intangible assets, other acquisition related costs, earnings were a stronger 32 cents per share.

The Street was looking for earnings of 25 cents per share on revenue of $1.01 billion.

R&D costs increased 16.7 percent in the quarter, while SG&A rose just 7.8 percent.

Commenting on the quarter, CEO Jen-Hsun Huang said, "Consumer demand for notebooks powered by our GeForce GPU...resulted in record revenue for these products."

Looking ahead, NVIDIA sees third-quarter revenue growth of 4 to 6 percent sequentially, translating to a range of $1.057 - $1.078 billion. The Street is currently looking for revs of $1.05 billion.

NVIDIA shares are up over 22 percent in the post-market session.

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