NVIDIA, the world leading producer of 3D graphics processors and related software, recently issued strong financials for its fiscal 2017 second quarter ended July 31. Revenues increased 23.9% y-o-y to $1.428 bn, beating consensus estimate of $1.355 bn, on the back of solid growth across all the platforms. Revenues from GPU business rose 25% to $1.2 bn driven by strength in GeForce GPUs and Gaming revenues. Revenues from datacenter (including Tesla and Grid) came in at $151 mn, up more than 50% from the year-ago quarter. Tegra processor revenues jumped 30% to $166 mn. Adjusted operating income surged 76.1% to $324 mn, and operating margin expanded 670 basis points to 22.7%. Adjusted earnings per share of 44 cents surpassed analysts’ average projection by 7 cents.NVIDIA ended the quarter with cash and marketable securities of $4.88 bn and total debt (including current portion) of $1.43 bn. In FQ2, the company generated operating free cash flow of $184 mn and repurchased shares worth $509 mn. NVIDIA also announced a quarterly dividend of 11.5 cents per share, which offers annualized dividend yield of 0.7%.I believe that GPUs gaming platform, high-performance computing and datacenter will remain NVIDIA’s major growth drivers. I also expect that innovative product pipeline and the higher adoption of the company’s Tegra processors could act as a catalyst, going forward. For the third quarter of fiscal 2017, NVIDIA expects revenues of approximately $1.68 bn (+/-2). The company also anticipates capital expenditures in the range of $35-45 mn and non-GAAP tax rate at 21% (+/-1%).Shares of NVIDIA jumped on strong FQ2 results. However, the stock, I believe, still has room for the further growth and can reach $68 in medium term. $NVDA, NVIDIA Corporation / 1440