(Corrects headline to show it is revenue forecast)
By Noel Randewich
SAN FRANCISCO, Nov 7 (Reuters) - Nvidia Corp gave arevenue forecast for the current quarter that was shy of WallStreet's expectations as the graphics chipmaker faces toughcompetition in tablets and a slow personal computer market.
With the personal computer industry losing steam, Nvidia hasexpanded its graphics chips into mobile devices, but it ismeeting stiff competition from Qualcomm In c and otherrivals.
In the third quarter, revenue from Nvidia's Tegra mobilebusiness fell 54 percent and revenue from its PC graphics chipbusiness declined 2 percent.
The company expects its mobile chip business, called Tegra,to remain flat this year as it focuses on integrating Long TermEvolution (LTE) features on upcoming components, making themcompatible with high-end carrier networks and more attractive tosmartphone makers.
Nvidia's lighter-than-expected revenue forecast follows other chipmakers that have failed to impress analysts. RBCanalyst Doug Freedman said a post-earnings gain in Nvdia's stockwas likely caused by some investors having expected a lowerrevenue forecast.
"We've been hard pressed to find anyone to beat numbers forQ4," Freedman said.
Several semiconductor companies, including Texas InstrumentsInc, Intel Corp and Qualcomm, have givencurrent-quarter revenue forecasts in recent weeks thatdisappointed Wall Street, raising concerns that manufacturers ofindustrial and consumer devices might have overestimated themacroeconomy.
Nvidia's most recent Tegra 4 chips are being used inMicrosoft's Surface 2 tablet and a smartphone made by Xiaomi inChina.
Nvidia's PC graphics chips are often used in high-end laptopand desktop computers favored by gamers. The move by consumersto tablets has hurt those premium PCs less than cheaperversions, but rivals such as Advanced Micro Devices Inc and Intel are competing heavily in that niche.
Also in its report on Thursday, the company announced a 13percent increase in its quarterly dividend, and said its boardauthorized an additional $1 billion for its stock repurchaseprogram.
Revenue was $1.054 billion and net income $119 million, or20 cents a share, in the third quarter ended in October,compared with $1.204 billion and $209 million, or 33 cents ashare, in the year-ago quarter. Adjusted EPS in the thirdquarter was 26 cents.
It said revenue in the fourth quarter would be $1.05billion, plus or minus 2 percent.
Analysts on average expected revenue in the third quarter,which ended in October, of $1.052 billion and fourth-quarterrevenue of $1.083 billion, according to Thomson Reuters I/B/E/S.
Nvidia shares were up 2.7 percent in extended trading afterclosing down 2.38 percent at $14.55 on Nasdaq. (Reporting by Noel Randewich. Editing by Andre Grenon)
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