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Nvidia's quarterly net income surges 29 percent

SANTA CLARA, Calif. (AP) -- Chipmaker Nvidia's quarterly net income rose 29 percent, thanks largely to wider profit margins and sales of its latest graphics chips.

The company's results beat analysts' expectations and its shares rose in extended trading.

Nvidia reported Thursday that it earned $77.9 million in the first quarter that ended April 28, or 13 cents per share. That's up from $60.4 million, or 10 cents per share, the year before.

Excluding some items, adjusted earnings were 18 cents per share, an increase from 16 cents the year before.

Revenue rose 3 percent to $954.7 million. Nvidia made 4 cents more in profit from every dollar in sales: Gross margins rose to 54 percent from 50 cents.

Analysts had been looking for adjusted earnings of 10 cents and revenue of $940.6 million, according to data provider FactSet.

The Santa Clara, Calif., company is best known from making the chips that drive the action in video games. But it also makes processors for mobile phones and tablets.

Last month, Nvidia said it would return more than $1 billion to shareholders this fiscal year through buying back stock and dividends.

Its shares rose 20 cents, or 1.4 percent, to $14.11 in after-market trading following the release of the earnings report.