CHIP DESIGNER Nvidia has posted better than expected financial results for the fourth quarter of 2013 thanks to growing popularity in PC gaming, despite the downturn in PC sales.
The California chip designer posted an overall net profit of $1.05bn for the fourth quarter of 2013, higher than the $1bn that Wall Street market analysts expected.
Interestingly, Nvidia's better than anticipated results were down to strong sales of high-end graphics processors to PC gamers.
"Quarterly revenue came in well above our outlook, driven by PC gaming, capping an outstanding year for our GPU business," said Nvidia CEO Jen-Hsun Huang. "Tesla and Quadro both achieved record annual revenue."
Nvidia's fourth quarter growth in its GPU business to revenue of $947 million showed a 14 percent increase year over year. The company said that graphics sales were particularly strong for desktop PCs, with its Geforce GTX GPU sales increasing nearly 50 percent.
The boost in PC gaming division comes as a surprise, considering the recent reports from market analyst firms such as Gartner and IDC, which have both said that the PC market is slowly dying.
Earlier this month, Canalys reported a decline of seven percent in PC shipments over the last year alone, with shipments falling in all regions.
Sales of Nvidia's notebook GPUs were in line with analyst reports, however, with sales declining slightly, though they tracked the overall market decline of notebooks. It seems that gaming is becoming more popular on desktop PCs than on laptops and notebooks.
Huang said that the firm's latest flagship 192-core Tegra K1 mobile processor is also helping to expand the popularity of its GPUs, especially in the auto ndustry, where it is "paving the way to self-piloted cars".
Nvidia announced the Tegra K1 processor at CES in January, and claimed that it can match the performance of the Playstation 4 (PS4) and Xbox One games consoles.
Described by the company as a "super chip" that can bridge the gap between mobile computing and supercomputing, the Nvidia Tegra K1, which replaces the Tegra 4, features 192 cores and is based on the firm's Kepler architecture. µ