The Santa Clara, California-based company said it expects about $1.18 billion in revenue in its current fiscal quarter, which ends in November.
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Wall Street was looking for earnings of 10 cents per share with $1.01 billion in revenue.
On average, 25 analysts polled by Thomson Reuters expected earnings of $0.10 per share for the quarter.
“Our strong performance in a challenging environment reflects NVIDIA’s success in creating specialized visual computing platforms targeted at important growth markets”, said Jen-Hsun Huang, president and chief executive officer of NVIDIA.
During the quarter, Nvidia saw strong demand for its GeForce GTX gaming processors, driven by advanced new games and growth in competitive e-sports; and more users embraced the GeForce Experience PC gaming platform.
In the last reported quarter, the company narrowly missed both earnings and revenue expectations. On an adjusted basis, the company earned 34 cents a share, ahead of 11 cents a share forecast by analysts in a FactSet survey.
The company also saw momentum for its grid graphics virtualization. Nvidia had 1QFY16 GAAP EPS of $0.24, and missed the consensus estimate of $0.25.
For one thing, Nvidia is still in the process of writing down its Icera wireless modem business, which in May it said it would scrap after failing to find a buyer for it. It ate $103m in restructuring and other charges in Q2 related to that wind-down, and it said it expects to write down another $15m to $25m in the third quarter.
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Nvidia Corp. shares added $1.95, or 9.5 percent, to $22.40 in aftermarket trading. Up to Thursday’s close, they had risen almost 2 percent this year, compared with a near 12 percent fall in the broader Dow Jones US chip index.
