Revenue for the quarter was $776.5 million, a fall from $892.6 million last year.

"Nvidia's business is recovering. Product demand is improving, and our strategic investments are leading to new growth," Huang said. The company has invested in new products such as Tesla, a graphics processing unit for high-performance computing, and low-power Tegra chips for mobile devices. The products should start contributing to the revenue stream soon, Huang said.

"Our two newest businesses began to ship meaningful amounts of product this past quarter and show significant promise," Huang said. Tegra has already been adopted by Microsoft for its upcoming Zune HD portable media player, and Samsung has said it would use the chip in a future netbook.

Nvidia may also benefit from Microsoft's upcoming Windows 7 OS, which could fuel demand for GPUs, Huang said. Consumers are demanding better visual experiences from PCs, and the OS can boost graphics performance by breaking up tasks over multiple cores. Nvidia is building multicore graphics cards that are designed to work with the OS. Windows 7 is due for launch on Oct. 22.

"It's the greatest opportunity in the GPU business I've seen in the last 10 years," Huang said. Taking a shot at rival Intel, Huang said that parallel processing capabilities in computers will reside in the GPUs, not in the CPUs.